Enegi completes £2m fundraising

MANCHESTER-based oil exploration firm Enegi Oil has raised £2m on the stock market.

The company has placed 24.8 million shares with new investors at 8.11p.

Just over half of the shares have been acquired by the Canadian oil exploration firm Black Spruce Exploration.

It agreed to invest last month as part of a deal which will see it take a 60% interest in Enegi’s portfolio in Western Newfoundland and cover the cost of drilling.

The balance has been taken by the UK-based investment fund YA Global Master.

Enegi’s chief executive Alan Minty said: “We are delighted to have entered into this farm-in with Black Spruce. This agreement, as well as Black Spruce’s other recent transactions, is hugely significant for the development of our Newfoundland assets and for the region as a whole.   
 
“We look forward to the multi-well drilling campaign, which is expected to kick off this year with the drilling of PaP#4, and to the significant increase in value such activity will add to our assets.”