Enegi Oil shares slump on gloomy update

SHARES in North West-based explotation company Energi Oil slumped 48% today after the firm revealed that tests on a Canadian site had proved to be disappointing.

Shares slid 32.5p to 35p as the Manchester company said initial exploration at its Garden Hill site in Newfoundland had found it was not economically viable.

As a result the well has been temporarily shut down.

It said though there was still potential in other parts of the location, and that the well had proved the presence of producible oil at the southern end of an “identified trend”.

In a brief statement the company said it was “considering its options” and working with its adviser Cenkos Securities in reviewing alternative ways forward.

Enegi Oil joined AIM in March 2008 with a shares placing at 181p.