Enegi Oil has raised approximately C$1.64 million (approximately C$1.55 million net of expenses), which at current exchange rates is approximately £1.05 million (£1 million net of expenses), through a placing (the Placing) of 6,554,500 new ordinary shares (New Shares). These new funds have been raised by placing one New Share at a price 16 pence per share (Placing Price), together with a corresponding one half purchase warrant per New Share. Each full purchase warrant will allow the subscriber to purchase one additional new ordinary share in the Company at an exercise price of 30 pence per new share, for a period of 18 months from 24th June 2011 (the "Warrant").

The Placing has been conducted by Jordan Capital Markets, Inc. ("Jordan Capital") based in Vancouver, Canada, who will also be also be issued with 147,708 New Shares ("Fee Shares") and a corresponding 73,854 Warrants. The Placing Price was slightly lower than the Board had originally expected due to difficult market conditions. However, the Placing Price still represents a significant premium to current market price.

Equity Line Facility

Via its announcement on 19th May 2011, shareholders will be aware that the Company has secured a three year Equity Line Facility of up to £7.5 million (the "ELF") with Dutchess Opportunity Cayman Fund ("Dutchess"). The Company has drawn down approximately £300,000 from the ELF by issuing 2,144,474 new ordinary shares ("ELF Shares") to Dutchess at a price of 13.75 pence.

Issue of Shares

An application for admission of the New Shares, the Fee Shares and the ELF Shares (in total, 8,846,682 new ordinary shares) has been made to AIM and admission is expected to occur at 8.00 a.m. on 1 July 2011 ("Admission"). Following Admission, the Company's total issued share capital will be 97,200,993 shares. In total, the New Shares, Fee Shares and the ELF Shares will represent approximately 9.1 per cent of Enegi's enlarged issued share capital.

Use of Proceeds

The new funds will be used to complete the remaining elements of the PaP#1 Well work over programme and to further advance seismic activities over PL2002-01. Remaining monies will be used for continuing the due diligence activities on the ABT Option announced on 19th May 2011 and for general working capital purposes. A comprehensive due diligence programme in respect of the ABT Option is underway and the Company will provide further updates, as appropriate, in due course.

Alan Minty, Enegi's CEO, commented,"We are delighted to have successfully concluded this funding programme. This allows the Company to accelerate the development of Enegi's future activities. In particular, we will be continuing apace to complete the next phase of the work program at Garden Hill South.

The coming months will be an exciting and active period for the Company."

Tags: Enegi Oil