Alan Minty is no stranger to the setbacks that can befall a small cap exploration and production company. Since bringing Enegi Oil (LON:ENEG) to AIM amid ferocious market conditions in March 2008, work on the company’s main projects in Atlantic Canada have frequently been a source of frustration rather than major success. The experience triggered a strategy change in summer 2010, with Enegi slightly reducing its exposure in Canada and exploring ways to expand its asset portfolio. What followed was the addition of a potential oil shale play in Ireland’s Clare Basin, together with moves to work much closer with another of Minty’s projects, AB Technology. While exploration and development work remain a focus at Enegi, Minty believes that if a suitable deal with AB technology can eventually be done it would offer a potentially exciting means of exploiting marginal field opportunities by using innovative buoy technology.
Enegi holds the hydrocarbon rights to an onshore petroleum lease and two offshore exploration licenses around the Port au Port Peninsula of western Newfoundland. The 160 sq km lease contains the discovered Garden Hill South field, as well as two other leads at Garden Hill Central and Garden Hill North. Meanwhile, the two licences contain the potentially sizeable Shoal Point prospect. The focus of work in Newfoundland is currently on the PAP#1 ST#3 well, which was a horizontal sidetrack well drilled in 2008, with workover operations due to be completed in early October.
As part of its plans to build a wider portfolio of interests, earlier this year Enegi acquired an option on a licence in the Clare Basin in Ireland, which lies within the same fault system trend as the prospects and discovery in Newfoundland. Studies so far suggest the company could be looking at a potential shale oil prospect and work there is also ongoing. Enegi’s most recent corporate manoeuvring has involved trying to bring AB Technology into the company’s fold. AB Technology has developed a system that uses buoy technology to house oil production, processing and storage facilities (storing between 200,000 and 300,000 barrels of oil) and is designed to alleviate the high costs of production that often cause smaller oil fields to become sub-economic. Enegi recently opted not to extend a four month option to acquire the business but it is clear that both sides still want to work together…
"Enegi’s partner, Dragon Lance Management Corporation, is currently carrying out a workover in return for a 40% interest in the well, which is due to be completed in early October."
I think you need to check the RNS of 10/06/11. I believe your comment re interest is now entirely incorrect. From the RNS:-
"All farm-in agreements with Fire Horse Energy Limited that relate to PL2002-01 have been terminated by the Company to enable the work programme to be moved forward in a more timely fashion;
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· Enegi now holds all rights to the PL2002-01 acreage and production from the PAP#1-ST3 well thereon"
