Enegi Updates on Newfoundland Drilling Operations
Enegi, the western Newfoundland focused oil and gas company, has provided an operational and corporate update.
Following Enegi's announcement of the preliminary results of the PAP#1-ST#3 well on February 9, the Company is examining various options for improving the flow rate and recovery from the well. It is too early, however, to determine whether any of these options will be technically effective or economically justifiable. The Company is also continuing to investigate the geological implications of the GHS well in relation to the trend of undrilled prospects in the group's 100% owned acreage to the north east.
Enegi has been advised that the financial position of PDI Production Inc. ('PDIP'), the Company's wholly owned Canadian subsidiary, has been materially adversely affected by results of the PAP#1-ST#3 which was expected to generate revenue for the group going forward. PDIP now has liabilities in excess of its assets and has entered into discussions with its creditors to reschedule payment of its liabilities.
Enegi is working closely with PDIP to ensure that the group's assets continue to be developed and the value of those assets is maximized for the benefit of shareholders. To this end, the Company is continuing the review of its operational and financial options that it announced previously. Further announcements will be made when the Company has greater clarity on the outcome of this review and any update on the financial position of PDIP.