Enegi secures £1.2m investment

MANCHESTER-based oil exploration firm Enegi Oil has signed a letter of intent with Black Spruce Exploration Corp for the development of its lease and licence portfolio in Western Newfoundland.

The letter secures a multi-well programme to accelerate development of Energi’s Newfoundland assets and the two firms will enter into a definitive Farm-in Agreement next month.
 
Under the terms, BSE will be able to earn a maximum working interest of 60% by paying 100% of the costs of drilling and completing a maximum of 12 wells on the Energi’s Newfoundland assets.
 
When the Farm-In is executed, BSE will purchase £1.2m worth of shares in Energi.
 
Alan Minty, chief executive of Enegi, said: “This multi-well programme accelerates the development of the region and provides the opportunity to unlock the full potential, which we have always believed is inherent, of our Newfoundland assets.
 
“While we continue to maintain a strong presence and have invested considerable sums in the region, given the frontier nature of the area, we have always recognised that it requires strong collaboration with other operators, as well as service providers, to ensure the successful development of these projects.”

W T David Murray, chief executive of Black Spruce Exploration, said: “We believe that Western Newfoundland is a highly prospective region and offers great potential. We are delighted to be partnering with Enegi whose expertise and knowledge of the region will be invaluable as we look to successfully develop these conventional assets.”