Update on Garden Hill South drilling program

Enegi, the western Newfoundland focused oil and gas company, is pleased to provide an update on its drilling program at Garden Hill South.

The drilling of the horizontal section of the well has now been completed. The well has been acidized and cleaned out. The completion string is currently being run into the liner. This is expected to take approximately one week and will be followed by a flow test.

The overall duration of the flow test will depend upon the initial performance of the well. Theexpectation is that, following a successful flow test, the well would be put immediately onto production.

Garden Hill South is an onshore oil discovery that is 100% owned and operated by PDIProduction Inc. (‘PDIP’), the Company’s 100% owned Canadian operating subsidiary. Previousproduction tests from Garden Hill South to date have produced over 24,000 barrels of highquality crude with a gravity of approximately 51° API. TRACS International has estimated that Garden Hill South contains mean unrisked resources of 8.6 mmboe.

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