Enegi says that operations at Garden Hill South are continuing. Over the past number of weeks the Company's Canadian operating subsidiary, PDI Production (PDIP), and its regional partner, Dragon Lance Management Corporation (DLMC) has been preparing the site for the arrival of the equipment that is to be used on the workover. Where appropriate, DLMC has been procuring equipment and supplies. The first stage of the workover is the use of wireline equipment to gather the last elements of information necessary to ensure the maximum effectiveness of the fraccing operation, which will be undertaken by a coiled tubing unit. This is now underway and we look forward to providing the market with further updates on its progress.

Further, Enegi has reached several milestones in securing its long-term future and ensuring that it is in a position to take advantage of the regional development play with DLMC as announced on August 16, 2010. Firstly, PDIP has informed the Company that the majority of its creditor arrangements have now been satisfied. While there remain a small number of creditor arrangements outstanding, management are confident that these can be met through the Company's working capital.

Alan Minty, CEO of Enegi Oil commented, "While significant work has already taken place, I am delighted that the larger elements of the workover program have now commenced. It is important for the future of the Company that this operation is performed to the highest standard after considering all available information and, while it seems that this program is taking longer than expected, management are confident that the approach that has been taken is the right one and that the program will be performed to generate the maximum value for shareholders."

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