Enegi "reviewing its options"

NORTH West-based exploration company Enegi Oil said today it is still considering its financial and operational options after it emerged that one of its wells was not economically viable.

Last week shares in the Manchester company almost halved in value to 35p after initial exploration at its Garden Hill site in Newfoundland were disappointing.

Enegi Oil said it is examining various options for improving the flow rate and recovery from the well.  However, it is too early to determine whether any of these options will be technically effective or economically justifiable.

The company added that the discovery has significantly impacted its Canadian subsidiary, PDIP, which is now trying to reschedule payment of its liabilities to creditors.

In a statement Enegi Oil said: “The company is continuing the review of its operational and financial options that it announced previously.  Further announcements will be made when it has greater clarity on the outcome of this review and any update on the financial position of PDIP.”