ENEGI OIL PLC
Trading symbols:

London Stock Exchange: ENEG

Bourse de Luxembourg: GB00B29T9605

25 November 2008

Highlights:
Drilling has now commenced in the target formation
• Hydrocarbons have been encountered
• Drilling of the horizontal sidetrack will be completed within 20 days

Garden Hill South is an onshore oil discovery that is 100% owned and operated by PDI Production Inc. (‘PDIP’), the Company’s 100% owned Canadian operating subsidiary. Previous production tests from Garden Hill South to date have produced over 24,000 barrels of high quality crude with a gravity of approximately 51° API. TRACS International has estimated that Garden Hill South contains mean unrisked resources of 8.6 mmboe.
Drilling of the PAP#1-ST#3 well commenced on 27 September. The PAP#1-ST#3 well is targeting the Aguathuna Formation, a dolomitized limestone formation of the Early Ordovician St. George Group.
On 31 October, PAP#1-ST#3 penetrated the Aguathuna formation as prognosed. The vertical portion of the well has now been cased and drilling of the horizontal extension has commenced. The well has encountered both oil and gas in the formation. While this is encouraging, the economic significance of these hydrocarbons is unclear at this time.
The well has been drilled to a Measured Depth of 3,975 meters and the Measured Depth on completion will be 4,448 meters. The drilling program is expected to be completed within the next 20 days. Once drilling has been completed, the well will be logged and a well testing programme undertaken.
Alan Minty, Chief Executive Officer of Enegi, said: "The presence of oil and gas within the Aguathuna formation is very exciting. We will continue drilling the horizontal side track with the expectation that PAP#1-ST#3 will be brought on to production following the well testing programme."

a6dyl