Enegi Oil, the western Newfoundland focused oil and gas company, provides an update on its drilling program at Garden Hill South, Canada.

On 3 January, the PAP#1-ST#3 well was brought on line for clean up prior to undertaking a flow test. During 4 January, the well produced 460 barrels of oil and natural gas of 236 barrels of oil equivalent. The well has been choked back during this period to assist in the clean up, which is ongoing. Consequently, this is an initial flow rate as the well cleans itself up and is not indicative of what the sustainable flow rate of the well might be over time.

Following clean up, the well will be shut in briefly to allow the pressure in the reservoir to recover. The Company will then undertake a flow test without choking back the well which should be completed in late January with the results to be announced shortly thereafter. Following the flow test, the Company expects to move the well into production.

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 GHS contains mean unrisked resources of 8.6 mmboe.

Alan Minty, Chief Executive Officer of Enegi, said, "We are tremendously excited about the initial results at Garden Hill South. The horizontal sidetrack has always been our primary focus and we are looking forward to moving into production following completion of the flow test."

Tags: Enegi Oil