Reserves at Enegi’s GHS well bigger than expected
ENEGI Oil has revealed that its most advanced well contains more than 61.5m barrels of oil and 117 billion cubic feet of gas.
Results follow testing at its Pap#1 well at Garden Hill South in Newfoundland, which state that its well is in contact with a larger-than-expected reservoir, and that it has the capacity to extract up to 310 barrels of oil per day when run at full capacity.
It added that it will continue to flow the well ad differing pressure rates in a bid to gain more information about the amount of oil & gas it can extract and the most efficient pressure rates for doing so.
It also said that production partner Shoal Point Energy’s announcement of a find of up to 49.4bn barrels of oil at the offshore Green Point Shale site near Newfoundland “reaffirms the confidence the company has” in its own assets in the area.
Enegi CEO Alan Minty said: “Since 2008 we have worked hard to increase the Company’s resources and are delighted that the latest test results confirm that the connected oil in place associated with Garden Hill South is in excess of those stated in Enegi’s (previous reports) CPR.
“We believe that the latest results, the presence of a live petroleum system, and the size of the Green Point Shale justify further development activity in our acreage,” he added.
He added that it was “now beyond dispute that our Canadian assets have significant potential and value”.
By close of trading, the company’s shares increased in value by around 10% to 16.5p.
