Browse Sections

• Education
• Business 
• Blog
• Special reports

Enegi Oil's new explorations

Kevin Feddy
13/ 8/2008

RESOURCES Shares in Enegi Oil, a Manchester-based exploration company, ticked up after it announced plans to start drilling at its oil field off Newfoundland, eastern Canada.

Enegi Oil, which floated in March, said its Canadian subsidiary, PDI Production, had taken delivery of a rig which has been transferred to its field called Garden Hill South.

PDI Production has so far produced more than 24,000 barrels of crude in tests from Garden Hill South, and reports have indicated the well could produce up to 2,500 barrels a day.

Alan Minty, chief executive of Enegi Oil, said he was `tremendously excited' about the drilling programme and that he was encouraged by the results of recent testing. He said the forecast levels of production from the well would make the business self-financing.

The shares gained 2.5p, or 1.59 per cent, to 160p after the update. They were priced at 181p when they were placed on AIM in March, valuing Enegi Oil at £55m.

Mr Minty, whose long career in the oil and gas sector has involved stints in Zambia, Saudi Arabia, Switzerland and Norway, runs the business with his son, Damian, its commercial manager.