Investor defers Enegi’s £2.75m

MANCHESTER-based exploration company Enegi Oil is chasing an institutional investor for £2.75m.

The business, which raised £15m when it floated on AIM in March, said one investor had sought to defer payment on 1.5 million shares.

Chief executive Alan Minty said the company was in talks with the unnamed investor and hoped to recover the debt by the end of October. The investor has already provided security to Enegi over certain assets. A further announcement will be made if the debt is not settled by October 31.

Meanwhile, the business saw losses widen as it expanded and committed to new oil fields. In its first full-year results it reported a pre-tax loss of £3.4m, up from £1.4m last time, for the 12 months to June 30.

Mr Minty said this was largely down to the additional costs involved with going public and higher staff and administrative costs as it geared up for drilling at two fields in Canada, Shoal Point and Garden Hill South.

But he was positive about the company’s progress.

He said: “Operationally we have re-balanced our portfolio, increasing our interest in Garden Hill South appraisal and production at little cost to shareholders. We will continue to focus on our strategy of delivering prospects which provide near term production opportunities and thus cash flow.

He added: “Garden Hill South, currently being drilled, is one such opportunity and has the ability to make Enegi self-financing if the forecast levels of production are achieved.”