Nu-Oil & Gas says G2 Energy completes due diligence on EL1070

13th Feb 2017 11:35

(ShareCast News) - Shares in Nu-Oil & Gas are down more than 2% on confirming G2 Energy has successfully completed its due diligence on EL1070, which is offshore western Newfoundland.G2 Energy has an exclusive option to earn 100% of Nu-Oil & Gas' working interest in the Deep Rights on EL1070, with the company's wholly owned subsidiary, Enegi Oil Inc, retaining a 5% gross overriding royalty should the option be exercised.G2 Energy was now proceeding with the work required to submit an application for a significant discovery licence (SDL) on EL1070."In this respect, prior to the end of the option period of 24 months from 16 December 2016, G2 Energy must achieve a flow test for hydrocarbons on one or more of the wells on EL1070, a requirement under the regulations for the submission of an application for a SDL," said Nu-Oil.The Deep Rights within EL1070 are currently held by Enegi Oil.At 10:39 GMT, shares in AIM-priced Nu-Oil were down 2.02% to 0.48p each.