Enegi has received formal approval from the Newfoundland and Labrador Department of Natural Resources to proceed with the next stage of the workover at the Garden Hill South property. The Company can now commence operations with 24 hours' notice to the DNR, and has been in contact with Schlumberger and Dragon Lance Management Corporation with regard to scheduling of activities.

Background

GHS is an onshore oil discovery that is 100% owned and operated by PDI Production Inc. the Company's 100% owned Canadian operating subsidiary. To date, approximately 30,000 barrels of high quality crude with a gravity of approximately 51° API has been produced from GHS.

GHS was discovered in 1995 by the Port au Port 1 well, even though this well was initially drilled to test the structural concept for a larger offshore lead. The well produced at up to 1,742 bopd before being shut in. This flow rate was achieved despite heavy invasion and mud losses into the target formation during drilling, however the well proved the structure and presence of hydrocarbons within the Port au Port play.

Tags: Enegi Oil