Leni Gas and Oil plc is an international oil and gas exploration, development and production company headquartered in London, trading on the FTSE AIM All-Share. The Company has assets in the US Gulf of Mexico, Spain, Trinidad, Hungary and Malta. LGO’s strategy is to deliver growth through the acquisition of proven reserves and the enhancement of producing assets in low risk countries.
Leni Gas & Oil November production up 10 % vs October, continues to make progress in Spain and Gulf
Leni Gas & Oil PLC (AIM: LGO) reported a 10% increase in month-on-month production through its direct and indirect operations, with 12,001 barrels of oil equivalent (boe) in November. Meanwhile the group’s various oil and gas field developments are progressing, with a number of projects undergoing work programmes during the month.
The increased production was largely buoyed by a 20% production increase in Trinidad as a result of workovers. Elsewhere, capacity was restricted in Spain and the Gulf of Mexico due to scheduled work.
Leni Gas & Oil is currently in negotiations to acquire the remaining 50% of the Icacos Oilfield on the Cedros Peninsula of Trinidad, which produced 1,429 barrels of oil during November. With its current 50% interest, the 715 barrels produced last month represented a 20% increase from October. The AIM listed resource company will assume the operator role in Icacos as it expands production once the final stages of the legal review of its new licence commitments are completed.
The emerging resource company owns 100% of the Ayoluengo Oilfield in northern Spain, through its wholly owned subsidiary Compañia Petrolifera de Sedano. "In Spain we continue to steadily increase production despite restricting oil production whilst water shut-off and gas handling works are ongoing”, Executive Chairman, David Lenigas said, “These works shall both maximise the productivity of the single completions and prepare the operation for the next major capital programs to open new production zones."
Meanwhile in the Gulf of Mexico, the company is working towards returning the production to near capacity, as work programs upgrade compression at the Eugene Island Field. Leni Gas & Oil owns 28.94% in Byron Energy, which in turn owns varying working interests, between 10% and 25%, in the Eugene Island joint venture.
The resource junior owns 7.27% ofPetroHungaria Kft, which operates the Penészlek Gasfield in eastern Hungary. Pen-104 and Pen-105 are currently shut in as development work continues, with Pen-104 undergoing preliminary testing, while Pen-105, which was completed in September, is awaiting the construction of the pipeline connection to the main export pipeline. Pen-105 tested flowrates of over 78,000 m3 of gas per day from a nine metre interval.
The drilling permits for the Pen-101 and Pen-106 wells have been issued and site construction will commence shortly. The drilling rig is expected to be mobilized to the location late in January 2010. Elsewhere in Hungary, the ZalaGasCo joint venture, in which Leni Gas & Oil has a 14.54% interest, reported no activity during the period.
Looking ahead to next month, the company anticipates a similar production schedule, additionally in December Leni Gas & Oil intends to report the program of activities for all its operations for the next 6 months.
