Enegi, an independent oil and gas company, has welcomed an announcement by Shoal Point Energy on Monday, in which it detailed its farm-out agreement with Black Spruce and the programme under that agreement for EL1070 in which Enegi holds a 100 per cent interest.

According to the agreement, Black Spruce will re-enter and sidetrack Shoal Point Energy's 3K39 well by mid-June this year.

If petroleum is recovered from any exploration well covered by the agreement, the two firms will apply to the Canada-Newfoundland and Labrador Offshore Petroleum board for a significant discovery licence.

The company said it believes that the activities under the agreement optimise the chances of Enegi being able to secure a significant discovery licence for the 'deep rights' of EL1070.

Alan Minty, Chief Executive Officer of Enegi said: "We welcome the news by SPE and Black Spruce. This is a very a positive step towards achieving a significant discovery licence over EL1070 and we will continue to monitor their work programme going forward."

NR

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