Enegi Oil’s shares gush
SHARES in Manchester-based oil exploration firm Enegi Oil have jumped by almost a quarter to 20.25p after the company revealed favourable results of a progress report at its Garden Hill South site in Newfoundland.
The site is being developed by Dragon Lance Management Corporation, which said that prospects for the site’s most advanced well, PaP#1, had exceeded expectations.
It said the report was capable of “sustained production” of 200 barrels of oil per day (bopd), or 300 bopd if a pump or artificial lift was installed. The company had indicated earlier this year that the well was economically viable at 60 bopd.
DLMC said that production rates could increase as its work-over of the well completes.
Alan Minty, CEO of Enegi Oil, said: “The update from DLMC is very welcome and confirms our long held belief in the potential of GHS.
“These are exciting times for the Company and we look forward to receiving and providing the market and our investors with further updates, as we continue to benefit from DLMC’s practical and operational experience.”
Enegi farmed out production responsibility at the PaP#1 well in December last year, in a deal which gave dragon a 30% stake in the project but reduced Enegi’s capital outlay.
