2010-01-12-2009-11-20

To swap interest in play offshore Newfoundland for assets on same license.

PDI Production Inc., a subsidiary of Enegi Oil Plc, Manchester, England, (London AIM: ENEG) plans to acquire a 100% interest in the St. George's Group play offshore Newfoundland, Canada, from privately-held Shoal Point Energy, Calgary, and Canadian Imperial Venture Corp., St. John's, Newfoundland, (Toronto Venture: CQV) in exchange for its interest in the Green Point formation, a shale play located on the same license. Both plays are part of Exploration License 1070, which comprises 254,608 acres in less than 330 feet of water off the west coast of Newfoundland in the Port au Port Bay. Targets within the bay can be reached by directional drilling from onshore surface locations. Enegi says the license features two plays that could yield major discoveries: the conventional structural play in the middle Ordovician platform carbonates of the St. George's Group, which has produced hydrocarbons at Garden Hill South; and an unconventional shale play in the Middle Cambrian to Lower Ordovician Green Point formation, which has produced oil in historic wells on Shoal Point. Enegi reports that "there was considerable debate on the relative merits of the two plays" by the joint-venture partners, which resulted in the interest swap. The company estimates it has increased its risked prospective resources from Shoal Point by 2.1 million barrels of oil equivalent.