Enegi, BSE Plan Newfoundland Drill

Junior explorer Enegi Oil reported Monday that it and its partner in Newfoundland, Canada, Black Spruce Exploration (BSE), plan to drill at least one of two new wells on production license 2002-01(A) this year after BSE concluded a technical due diligence review of prospects on the license area.

Drilling of the first well is expected to take place in the autumn, following the arrival of BSE's drilling rig in western Newfoundland. The drill form a part of Phase 1, which includes three appraisal and development wells and a re-work of an existing well on the Garden Hill Field.

Enegi added that it and BSE are continuing to work toward completing a definitive farm-in agreement.

EnegI CEO Alan Minty commented in a company statement:

"We are delighted that BSE agree with the need to drill at least one new well on PL2002-01(A) in 2013. BSE undertook a rigorous due diligence review of the company's technical data, using renowned experts in geology, geophysics, and reservoir engineering, and we are enthused that following this, BSE continues to share our long held view of the exceptional potential and prospectivity of our Newfoundland assets. 

"By committing to drill up to 12 wells for a 60-percent interest in Enegi's Newfoundland assets under the farm-in, and noting that the cost of each well will be significant, BSE has already demonstrated the inherent value of Enegi's Newfoundland assets.
"We look forward to working with BSE and providing further updates as activity on our acreage accelerates."

BSE CEO David Murray added:

"Based on the extensive data set that Enegi has acquired to date and the presence of a producing well in PL2002-01(A), with trade routes already established, we have taken the decision that it would be in the interest of all stakeholders to drill at least one well on PL2002-01(A) this year after the rig arrives in western Newfoundland this coming fall.

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