Enegi Spies Green Point Shale
Enegi confirmed that preliminary analysis suggests that "Green Point Shale" extends offshore from EL1070 to onshore PL2002-01, and covers an area of approximately 24km2 in the north-eastern part of PL2002-01.
During drilling activities in EL1070, hydrocarbon shows were encountered before target depths were reached, indicating an unconventional shale play in the Middle Cambrian to Lower Ordovician Green Point Formation ("Green Point Shale"). This is in addition to the deeper conventional structural play in the middle Ordovician platform carbonates of the St. Georges Group, which has produced hydrocarbons at the Garden Hill South (GHS) discovery in PL2002-01.
Consistent with the Company's stated strategy, PDI Production Inc. ("PDIP"), the Company's wholly owned operating subsidiary, swapped their interests in the unconventional shale play in EL1070 for a 100% interest in the deeper conventional structural play in November 2009. Having Green Point Shale in PL2002-01 adds the possibility of an unconventional shale play to the Company's assets, and furthermore, the play can be accessed from onshore. However, further analysis is required to determine more accurately the full areal extent, total thickness, and thermal maturity levels of the Green Point Shale in the Company's assets and its significance.
As an update, the Company continues to prepare the Garden Hill South site for the acid fracturing previously announced and will update the market in the near future.
Alan Minty, CEO of Enegi commented, "As we continue to review and de-risk our assets, our understanding of them and their potential and how their development should be managed will continue to evolve.
Further analysis is required to assess the full significance of having the Green Point Shale in PL2002-01, however, it adds a positive dimension to our exploration and development efforts in the area."