Enegi has been offered a 100% interest in an Onshore Petroleum Licensing Option to undertake a work program on areas of interest within the Clare Basin. The Clare Basin is located onshore western Ireland and is within the same fault system trend as the prospects and discovery in the Company's Newfoundland regional play. The Option covers an area of approximately 495 sq. kilometers.
Based on technical studies that have been carried out, the Company believes that the Clare Basin has the potential to contain shale gas. Well log analysis indicates the presence of a hot shale area, within the Clare Shale, that appears favorable for shale gas generation.
Following completion of the work program, the Option enables the Company to apply for Exploration Licenses over all or part of the areas of interest. Exploration Licenses are required before drilling activities can occur and the Company intends to apply for the relevant Exploration Licenses should the work program identify prospective targets. The work program is expected to cost up to £500,000, and must be performed within a two year time frame.
Alan Minty, CEO of Enegi Oil, commented, "As previously announced Enegi has adopted a strategy of reducing risk concentration. The award of this option demonstrates the commitment of the Company to build a portfolio of assets where real value can be created while minimizing the financial risk of the Company."
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