Enegi has entered into a definitive Farm-In Agreement with Black Spruce Exploration (BSE) in relation to Enegi's Newfoundland assets, PL2002-01(A), EL1116 and EL1070 (together "the Assets") ("the Farm-In").

Under the Farm-In, BSE will pay 100% of the costs associated with the execution of a multi-well drilling program over the Assets, to be implemented over two phases. Work has already commenced on defining a drilling program for a new well on PL2002-01(A), to be drilled this year following the anticipated arrival of BSE's drilling rig in Newfoundland in Autumn 2013. This new well will target and appraise the hydrothermally enhanced dolomite ("HTD") reservoir within the conventional, proven oil bearing Aguathuna Formation. The Aguathuna Formation has been proven to be oil bearing through previous drilling activity in the region, and most recently by the Company's producing well, PAP#1-ST#3.

Tags: Enegi Oil