Member Article

Manchester-based Enegi to start drilling in Canada

Oil and gas firm Enegi are readying themselves to start drilling in western Newfoundland, Canada, after approval from their partner, Black Spruce Exploration (BSE).

The Manchester-based company has assets in the UK North Sea, Ireland, Jordan and Canada, and will start drilling in Newfoundland after BSE completed its technical due diligence review.

Enegi and BSE plan to start drilling at least one of the two new wells in the development area “PL2002-01(A)” by Autumn this year, after the Canadian firm’s drilling rig arrived in Newfoundland.

Alan Minty, chief executive of Enegi, commented: “We are delighted that BSE agree with the need to drill at least one new well on PL2002-01(A) in 2013.

“BSE undertook a rigorous due diligence review of the Company’s technical data, using renowned experts in geology, geophysics, and reservoir engineering, and we are enthused that following this, BSE continues to share our long held view of the exceptional potential and prospectivity of our Newfoundland assets.

“By committing to drill up to 12 wells for a 60% interest in Enegi’s Newfoundland assets under the Farm-In, and noting that the cost of each well will be significant, BSE has already demonstrated the inherent value of Enegi’s Newfoundland assets.

“We look forward to working with BSE and providing further updates as activity on our acreage accelerates.”

Dave Murray, chief executive of BSE, added: “Based on the extensive data set that Enegi has acquired to date and the presence of a producing well in PL2002-01(A), with trade routes already established, we have taken the decision that it would be in the interest of all stakeholders to drill at least one well … this year after the rig arrives in western Newfoundland this coming fall.

“Having already invested upwards of US $25 million in purchasing a drill rig, piping, and associated equipment, we believe this course of action has the highest potential in realising revenues in the shortest amount of time.

“The drill rig is currently being fitted out in Houston, with the intent to mobilise this to Newfoundland as soon as the fitting out process is completed and regulatory approval is secured.”

This was posted in Bdaily's Members' News section by Miranda Dobson .