Losses widen to £17m at Enegi Oil

THE boss of Enegi Oil has hailed a bright future after a turbulent year at the group which saw losses leap to £17m..

Chief executive Alan Minty said it had been a year of adversity which saw production at its Garden Hill South site in Newfoundland temporarily halted.

However, it was reopened and the company believes that there is the opportunity to generate revenue from it next year.

In the year to June 30, pre-tax loss was £17,2m compared to £3.4m last time. Turnover was £140,000.

Chief executive Alan Minty said it had been a year of ‘disappointment and adversity’, but better times lie ahead.

: “Enegi can now look forward to the year ahead. With the actions that have been undertaken during the year and the activities post the year end, the company now has the potential to generate revenues from Garden Hill South.

“We are optimistic about the year ahead as we look forward to taking advantage of the opportunities which are available to us and developing the company further.”

Earlier this month, Enegi raised raise £1.3m with a new share placing. It was the second round of fundraising for the company this year – in August it raised £1.5m by placing 30 million new shares, for the continued development of the business.

The new funds will be used to pay CIVC Creditor Corporation $1m in final settlement of the group’s obligations to the company and to remove the mortgage over PDIP’s hydrocarbon assets.