Enegi Oil provide an update on its work programme relating to the Onshore Petroleum Licensing Option, covering areas of interest within the Clare Basin in Southern Ireland. This Option was awarded to the Company by the Department of Communications, Energy and Natural Resources in Ireland earlier this year.

Following the award of the Option, a preliminary field trip was undertaken, during which outcrops of interest for further study were identified and initial investigations into the overburden and burial history through geological time were undertaken. Results and observations from that exercise have been analysed and used as a basis for the development of a more detailed prospecting programme for the region. The Company has also been in discussions with, and is close to reaching agreements with, various qualified contractors who will undertake the detailed programme of laboratory studies and analysis of the samples that will be required.

The Company is now in a position to proceed with Phase 2. This will commence with a further field study within the Option area and is a more focussed field trip which will revisit outcrops identified to the north of the area before the end of December 2011. The trip will involve detailed sampling and stratigraphic logging of outcrops of interest and will also identify further outcrops around the basin to increase data coverage. A similar study is planned for the south of the area in early 2012.

Samples collected during the field studies will be submitted for analysis and it is anticipated that the laboratory study and analysis programme will be completed within the first half of 2012. During this time, the Company will also continue with a detailed review of previous seismic data for the area, in preparation for basin modelling that will be undertaken once the results of the sample analysis are available. All results and analysis will be summarised in a report for the Petroleum Affairs Division of the Department, which is required to be submitted by 30th November 2012, under the terms of the Licensing Option awarded.

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