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Enegi Oil secures funding to take Fyne forward

Initially Enegi is raising just over £2mln through a share placing to Yorkville Advisors YA Global fund, with 24.8mln shares being issued at an average price of 8.07p.
Enegi Oil secures funding to take Fyne forward

Enegi Oil (LON:ENEG) has secured over new funding as it advances the development of the Fyne field in the North Sea.

Initially Enegi is raising just over £2mln through a share placing to Yorkville Advisors YA Global fund, with 24.8mln shares being issued at an average price of 8.07p

A separate equity swap deal has also been arranged with Yorkville which sees cash being made available to the company over the next year. This will see new shares issued monthly, with the price linked to a benchmark of 8.88p.

The company, via the 50% owned ABT Oil & Gas venture, is working to deploy new production technologies that will transform the economics of marginal oil fields in the North Sea and offshore Ireland.

The injection of capital will cover Enegi’s work commitments for the Fyne field, which is currently the most advanced of the projects being pursued via the ABT Oil & Gas joint venture.

Enegi told investors that ABT’s partner, AIM quoted Antrim Energy (LON:AEY), expects to submit the new environmental statement for the project to the Department of Energy and Climate Change (DECC) by the end of March.

After that, the new field development plan is due to be submitted in ‘late summer’. On the current timetable, which is agreed with DECC, first production from Fyne is predicted before the end of November 2016.

In addition to Fyne, Enegi anticipates that the new cash will also cover the work commitments for the Dunmore and Helvick projects in the Celtic Sea, where ABT is partnered with Providence Resources (LON:PVR).

Enegi also intends to apply for new North Sea projects in the latest round of offshore licensing, which is now open.

"Considerable progress has continued to be made on our marginal field initiative in the last few months,” chief executive Alan Minty said in a statement.

“We look forward to working with Antrim and taking Fyne forward through to first oil using ABT Oil & Gas's appropriate technology as well as commencing our activities in the North Celtic Sea and applying for further opportunities in the 28th round.”

Minty also welcomed the findings of the Wood report, unveiled yesterday. According to Minty, the report mirrors the objectives of Enegi’s marginal field initiative.

“Through ABT Oil and Gas we are identifying low risk marginal fields which are unable to be developed using conventional development solutions,” he adds.

“Using our appropriate technologies, working with industry operators, we believe that we can maximize the recovery from these assets in the UKCS and internationally."

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