Enegi

Newfoundland-focused Enegi Oil claims initial drilling results from its Garden Hill South prospect are ‘tremendously exciting’.

The Manchester-based company, which floated on AIM and the Luxembourg Stock Exchange last March, says its wholly owned PAP1-ST3 well at Garden Hill South produced 696 barrels of oil equivalent last Sunday, consisting of 490 barrels of oil and natural gas equivalent to another 236 barrels of oil. Alan Minty, chief executive officer and significant shareholder of Enegi, says ‘we are looking forward to moving into production following completion of a flow test’ at the well.

According to the company, previous production tests at Garden Hill South, in western Newfoundland’s Port au Port peninsula, have produced more than 24,000 barrels of ‘high-quality crude’. Independent consultant TRACS International has estimated Garden Hill South in its entirety could contain ‘unrisked’ resources of 8.6 million barrels of oil equivalent.

Enegi raised £15 million at 181p, when it floated last year. After hitting 204.5p, the shares then tumbled to 45p as the stock market turned against oil explorers.

Highlighted by Growth Company Investor the other day at 57.6p, the shares have now perked up to 88.5p, valuing the company at £23.1 million, and, despite the vicissitudes in the oil market, could perform better than some sector peers.

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