Enegi to Begin Second Phase of Workover at Newfoundland Well

Enegi announced that a program for the next stage of the workover of its PAP#1 ST#3 well ('the Well'), onshore Newfoundland, has been submitted to the Department of Natural Resources ('DNR'). The well was drilled in 2008 and, following flow tests in 2009 and an extended well test in 2010, reworked in late 2010 and early 2011. The first phase of this workover program has increased the pressure recovery rate and improved reservoir connectivity, and the encouraging results have moved the company to undertake a second phase in the hope of achieving further improvements. The proposed program should commence in the next 2 weeks and take a maximum of 4 weeks to complete. The latest initial program results and proposed second phase of the workover are as follows:

Initial Program Results

  • The time taken for the bottom hole pressure to recover from approximately 18,000kPa to 31,000kPa was 8 days in June 2011, compared to 229 days following the initial flow test in 2009 and 68 days immediately after the initial stages of the workover in November 2010.
  • The initial results of the first chemical soak indicate improved connectivity between the wellbore and the reservoir.
  • Between May 31 and June 3, 2011, the well was flowed, as part of testing, for 9.5 hours each day, through a 94% choke, and produced between 75 and 94 barrels each day. 

Proposed Workover: Second Phase 

  • Flow the Well for a 3 day period to gather data to confirm the full effects of the first chemical soak.
  • Squeeze paraffin solvents and dispersants, followed by dead crude, down the Well.
  • Shut in the Well to monitor pressure recovery over 60 hours and flow the Well for a further 2 day period to gather data before squeezing further chemicals, dead crude and acid down the Well.

Depending on the results observed during this initial period, the Company may choose to shut the Well in for a further period, flow it back or prepare to re-acidize. Once complete, and again dependent upon results, the workover program will be followed by an extended well test, during which the parameters for production from the Well will be determined and preparations for production, including applications for all necessary approvals, will be completed.

The results of the program will also be accounted for in a revised resource estimate for the Company's assets in the region, which is currently being undertaken by AJM Deloitte of Calgary.

Equipment and personnel required for the workover program will be mobilized to site once approval to commence the program is obtained from the DNR. The Company will provide further details over the coming weeks.

Alan Minty, CEO of Enegi Oil commented, "As previously announced indications are that the completed elements of the workover allow a sustainable production rate of 200 bopd which would mean the well is economic. The results of the Initial Program are encouraging and we eagerly await the outcome of the Second Phase."


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