Enegi’s investor fails to pay
AN institutional investor has failed to settle a £2.75m debt with the Manchester energy business Enegi Oil.
Enegi raised £15m when it floated on the Alternative Investment Market in March but one unnamed investor did not pay for 1.5 million shares.
On October 1 Enegi said it hoped to resolve the issue by the end of the month and took security over some of the investor’s assets.
In a statement this morning the company said it was exercising its rights under that arrangement. It added that the dispute has not affected its drilling programme.
“The directors are confident that, whatever the outcome and timing of the action being taken to recover this debt, the company has sufficient funds to complete the current drilling program at its core site of Garden Hill South.”
Enegi also gave an update on its drilling programme at Garden Hill, an onshore site in Newfoundland.
Chief executive Alan Minty said drilling throughout October had given “encouraging” results. He expects oil production to start by the end of the year.
