Enegi assets hit by tumbling oil price

THE recent sharp fall in the global oil price has forced Manchester-based Enegi Oil to write down the value of its Canadian assets by £1.5m.

The Brent crude oil price has fallen by more than 46% since its $116 June peak.

But Enegi said it could reverse the impairment if the oil price recovers.

It contributed to a pre-tax loss of £4.8m in the year to June, up from a £3.1m loss last time. Revenues were lower at £45,000, down from £184,000.

The company said the loss also reflected its continuing investment in “marginal fields” – pockets of North Sea oil which have not been exploited because they are difficult to reach.

Chief executive Alan Minty said: “The period under review has undeniably been challenging for the Company. However, there is no doubt that the potential scale of our marginal field initiative is very significant. Whilst it has taken time and considerable effort to establish the foundations of this venture we are very confident that we are nearing the end of that phase and that we will see a considerable upturn in activity once it is completed.

“As a company we are pursuing a strategy which we believe is highly appropriate at this time in light of market conditions and industry sentiment and believe the outlook for the company remains very good. I would like to thank management and shareholders alike for their continued support and look forward to realising the rewards from the opportunities that we have created.”