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Additional Information

Market:	AIM
Sector:	Oil and Gas Exploration and Production
EPIC:	LGO
Latest Price:	1.12 (-1.33% )
52-week High:	3.18
52-week Low:	0.48
Market Cap:	14.04M

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Leni Gas & Oil Full Leni Gas & Oil profile here

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 and Oil raises further £0.8m

Thursday, September 02, 2010

Leni Gas and Oil (LON:LGO)(‘LGO’) has raised an additional £800,000, with the issue of 40 million new shares to institutional investors at 2 pence per share.

Back in July, the company raised £1.5m to fast-track its Spanish assets.

The funds raised in July are already being put to use as the Hontomin development programme kicked into gear last month. On the 25th August, LGO spudded the hole for the Hontomin extended well test in northern Spain.

In a recent analysis note, Edison Investment Research highlighted that the Hontomin-2 extended well test marks the start of an extensive development plan to evaluate the untapped oil and gas resources at Ayoluengo and in the surrounding concessions.

Edison believes that LGO has the potential to transform itself into a mid-tier E&P player. The company research-house said it considers LGO to be a ‘development and rehabilitation’ specialist and that it has a ‘large resource base’ given its junior status.

The objective of the Hontomin programme is to appraise the long term production potential of the Hontomin-2 well. The programme is expected to take 4 weeks to drill-out and re-complete prior to monitoring production performance over the coming months.

Electric wireline logging and perforation of the existing hydrocarbon intervals and other potential undepleted zones is scheduled for September/October to assess the full production potential of the structure.

All of the test production from Hontomin will be transported to the central production facilities at the Ayoluengo operations base for processing and oil sales.

The Hontomin prospect is a proven Lower Jurassic Lias Calcarenite hydrocarbon formation discovered by Chevron (NYSE:CVX) in the 1960s and initially tested at an initial rate of 700 bopd (barrels of oil per day).

The new shares are expected to begin trading on AIM on the 24th September 2010.

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