Enegi Oil (LON:ENEG) in an AIM listed O&G with focus on a near term activity in Newfoundland, Canada, the Clare Basin in County Clare, Ireland and the North Sea, UK.
Near term drilling activity is set to commence in April on the Garden Hill Field prospect, where Black Spruce Exploration BSE start a multi-well drilling campaign in Newfoundland. The first well provisionally called PaP#4 will be drilled to appraise the conventional, proven oil bearing Aguathuna Formation. To give an idea as to the potential the PaP#1-ST-#3 well in the Garden Hill Field flowed for total of 214 hours, producing 1,731 barrels of oil, up to 17 May 2013. According to a recent Enegi RNS “The original horizontal well report from Petra Physics Ltd. in May 2007 indicated that a suitably targeted well can produce at a range of 474 bopd to 5,523 bopd.”
The BSE Farm-in of Newfoundland assets and their investment to pay 100% of the costs associated with the execution of a multi-well drilling program in the project offers huge upside to Enegi without any operational responsibilities.
Commenting recently Alan Minty, stated:
"We are pleased with the continued progress that our partner BSE are making, but still believe that the current share price in the open market significantly undervalues the Company and its achievements to date. As such, we are taking a number of actions to address this. One of which is to reduce the amount of outstanding shares in the open market when there is an opportunity to do so. We are pleased that in doing so, on this occasion, we are also able to assist BSE at the same time."
A potentially interesting and lucrative aspect to Enegi could be its joint venture with ABT Oil & Gas where they hope to exploit marginal field resources. ABTechnology has developed an unmanned production buoy system, which is a low cost solution for floating production, storage and offloading system. The buoy system has the capacity to process up to 20,000 barrels of gross liquids per day and consists of a two stage separation system which removes water and gas before passing the processed crude oil to storage.
Progress to date with the ABT JV has included working agreements on marginal field projects in the UK Continental Shelf, Antrim Fyne Field farm in and the North Celtic Sea, namely the Dunmore and Helvick discoveries. In…
