Proactiveinvestors recommends
Pdf

Enegi Oil completes interest swap with Canadian Imperial Venture Corp to gain access to St George Oil Play

20th Nov 2009, 10:04 am Enegi Oil completes interest swap with Canadian Imperial Venture Corp to gain access to St George Oil Play

Enegi Oil (AIM: ENEG) announced that it has agreed a ‘project swap’ deal with Canadian Imperial Venture Corp (TSX-V: CQV, Frankfurt: DFM) and privately owned Shoal Point Energy. Under the terms of the deal, Enegi will gain 100% interest in the deeper formation on Exploration Licence 1070, the St George’s Group play. In return Enegi will transfer its interest in the licenses shallower, unconventional shale project the Green Point Formation.


Exploration License 1070 (EL1070) was issued in January 2002 to Canadian Imperial Venture Corporation. Later in 2006, CIVC farmed out 60% of its interests to Enegi Oil’s wholly owned Newfoundland operating subsidiary PDI Production Inc (PDIP).  PDIP subsequently farmed-out 28% of its 60% share of Shoal Point to SPE, in return for SPE paying 42.5% of the costs of drilling the well. Upon completion of the proposed deal, PDI Production will own 100% interest in the St George’s project.


EL1070 is located in Port au Port Bay in Newfoundland, Canada. The Licence comprises 103,040 hectares in water depths of less than 100m. Targets within the Bay are reachable by directional drilling from onshore surface locations. Two principal play types are recognized in EL1070 which according to the partners, equally have the potential to yield significant discoveries.


EL1070 provides a conventional structural play, the ‘St George’s’, in the middle Ordovician platform carbonates, which has produced hydrocarbons at Enegi’s Garden Hill South project, 40km to the South-East. Secondly EL1070 also presents the opportunity for an unconventional shale play in the Middle Cambrian to Lower Ordovician Green Point Formation which produced oil in historic wells on Shoal Point.


According to this morning’s statement, there was considerable debate on the relative merits of the two plays, in order to pursue the play of their choice the interest swap deal was agreed. The companies state ‘In this way, every company is able to maximize its interest in the play of its choice and pursue its development as rapidly and efficiently as possible’.


Enegi CEO, Alan Minty commented on the deal: "This transaction will enable us to focus and develop the play of greatest interest to us.  We believe the St George's play is very prospective and offers some good opportunities for us which we look forward to exploring further."

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.