Enegi Conducts Flow Tests at Garden Hill South

Enegi announced that Schlumberger has mobilized equipment and personnel to the Garden Hill South (GHS) property and the next stage of the workover has now commenced with flow tests being conducted and chemically conditioned crude being pumped down the PaP#1-ST#3 well.

As well as facilitating preparation for commercial production, the workover is expected to provide further data that will enable the Company to complete the Development Plan for GHS with the objective being to significantly enhance the ultimate recovery of hydrocarbons from the reservoir.

As outlined earlier, the workover is expected to consist of a number of tasks, including:

• Establishing safe injection rates and pressures, by conducting flow tests and by pumping chemically conditioned crude oil down the well;
• A bullhead acid squeeze on the target formation;
• Shutting-in the well for a soak period;
• Flowing the well to recover treatment chemicals;
• Shutting-in the well until reservoir pressure recovers;
• Flow testing at low rates for a 30 to 35 day period to evaluate reservoir inflow and recharge rates above bubble point;
• Shutting-in the well for an extended build up evaluation test.

CEO Alan Minty commented, "We are delighted that the next stage of the workover has now commenced. The workover represents a significant step as we work towards establishing full field development programs for GHS and our other Canadian assets. We believe this program will contribute to the demonstration of commerciality of the GHS discovery, which Hunt Oil in 1995 initially flowed at rates of up to 1,742 bopd and 1,528 bopd from two separate intervals. These are exciting times for the Company as we embark on and benefit from activity on our assets."