Enegi confident after sharing risk with Dragon Lance

MANCHESTER-based oil firm Enegi Oil continues to be positive of its prospects at its main site in Newfoundland.

In his half-year statement chairman Alan Minty said the company had focused on developing a strategy that reflects its financial situation and gives it the best basis from which to develop long-term growth in value for shareholders.

He said the main change had been to avoid “risk-concentration” where a bad outcome could have a significant impact on shareholder value.

With that in mind the board struck a deal with development partner, the Dragon Lance Management Corporation (DLMC), which will see Dragon Lance work its key well at Garden Hill in Newfoundland and take a 40% interest.

“The total cost of these operations, which will be borne by DLMC, will run into tens of millions of Canadian dollars and will secure long-term activity on our assets in western Newfoundland,” said Mr Minty.

In the six months to December 31 pre-tax losses widened to £461,000 from £338,000 and the company reported no revenue, down from £100,000 last time.