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In the highly speculative business of oil and gas exploration, Enegi Oil plc (LSE:ENEG) bets on the prospectivity of its Irish asset, which may contain shale gas.
In a statement today, the independent explorer said the shale discovered from its acreage in County Clare, west of Ireland came from a “rich source rock” containing an “abundance of preserved organic matter” of lower maturity, enhancing the potential for gas preservation.
“The results of sample analysis undertaken to date have been extremely encouraging, indicating a higher prospectivity than was previously anticipated,” Enegi stated.
Shale was first discovered in the said area in 1962 through a wildcat exploration well drilled to a depth of 3,353 metres and encountered 150 metres of organic rich hot shale potential.
Enegi acquired rights to undertake preliminary work programme in the 495-square kilometre acreage in February 2011 for a two-year period, within which the company may delineate and identify prospective areas and potential drilling targets.
Current Non-Executive Director of the company, Derek Cochrane, was named today as the new Chief Operating Officer, who will manage the operations of the firm’s hydrocarbon assets in Ireland and Canada, including the Clare Basin acreage.
The UK-incorporated firm has moved to further test the Clare Basin to determine prospectivity and quantity the resource in-place, due to be submitted to the Irish authorities by November 2012.
“The latest results strengthen our belief in the potential of the Clare Basin. We look forward to the results… which will not only shape our plans for the area, but also give us an indication of the magnitude of resources that we could potentially book in future,” Chief Executive, Alan Minty, commented.
Enegi shares slipped back to its closing price of 8.25 pence by 11:50 AM GMT, after gaining 9.1% to 9 pence at 9:45 AM, following the announcement.
Company Spotlight
Enegi Oil plc is an independent oil and gas exploration company focussing on assets in Newfoundland and Labrador in Canada and the Clare Basin in Ireland.
Incorporated in the UK, the firm is trading on the Alternative Investment Market of the London Stock Exchange under the ticker “ENEG”.
