Leni Gas & Oil

Leni Gas and Oil plc (LGO) have brought together a strong management team, providing experience across evaluation, exploration, development and production of oil and gas assets. The Board has considerable experience in new business development and also in corporate management. The Directors broad collective credentials have enabled LGO to pursue its strategy of delivering growth through acquisition of proven reserves and enhancement of producing assets. The Company seeks to:

• Establish a portfolio of proven reserves and producing assets in low risk countries with significant development and enhancement potential
• Identify and acquire underexploited projects, and implement both proven and leading edge oilfield technologies to maximise exploitation
• Leverage the management’s extensive expertise in the oil and gas sector to convert acquisition opportunities to profitability across the entire portfolio

The Company’s primary strategic approach is to identify projects and businesses which contain a development premium which can be unlocked through a combination of financial, commercial and technical expertise.

LGO intends to execute this strategy by investing in a relatively small number of assets where it can apply its resources most effectively.

Since its incorporation in 2006, the Company has been fulfilling this strategy and has invested in a number of oil producing regions of the world. LGO has secured exploration areas in the US Gulf of Mexico, Spain and Trinidad. The Company has invested primarily in areas with a proven track record of production and where there is significant opportunity for further development and to maximize shareholder value.

Trinidad

Trinidad operation now comprise of two main assets, the Icacos Oilfield and the Goudron Field. The 1,900 acre Icacos Oilfield in which Leni Gas & Oil (LGO) has 50% interest is located on the Cedros Peninsula of South-western Trinidad and lies within the East Venezuelan Basin.

The Gourdon oilfield lies between the East Moruga and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline to the Pointe-a-Pierre refinery in western Trinidad. 

Goudron Field (anticipated 100% LGO, operator)

• The existing producing zones have reserves of proven 1.9 mmbbls and estimated 3P reserve of 21.8 mmbbls
• The concession covers a total of 2,875 acres (11.4 sq km)
• The current production comes from a small number of active wells out of a total of about 150
• Production potential has been estimated to be in the range 1,000 to 4,000 bopd
• Additional undeveloped reservoirs in the Gros Morne (Upper Cruse) and Lower Cruse formations provide considerable opportunities for future reserves growth
• Much of the concession is underexplored and significant exploration opportunities exist

Icacos Field, (LGO 50%)

• 1,960 acres, onshore producing since 1960’s
• No seismic and exploration limited to shallow horizons
• Gross average 2011 (YTD) production 36 bopd
• Additional development potential and deeper targets
• New 100% LGO owned 815 acre lease acquired in 2011
• Additional leases in the Cedros are being negotiated

Spain

The Ayoluengo acreage has a long history of oil production, going back to the 1960s. A total of 54 wells were drilling within the field boundary north of Burgos, targeting reserves in Purbeck aged sandstone formations at between 900 and 1400 metres below surface. Peak production of was 5,900 bopd was achieved in 1969 however by the late 1980s production had fallen to 2,500 barrels of oil per day. Since that time a lack of investment has seen production levels decrease dramatically. Leni Gas & Oil (LGO) plans to invest in an enhanced oil recovery (EOR) project that has the potential to return the field to its 1980’s levels of production within the next 5 years.

Ayoluengo Oilfield (100% LGO)

• Acquired by LGO in October 2007
• Largest Spanish onshore oilfield
• Low sulphur crude, 37 degree API
• Total production 17 mmbbls, peak in 1969
• Remaining oil in place 104 mmbbls (P50)
• Original facilities handling 10,000 bopd
• Early 2011 average production 125 bopd
• Phase 1 well enhancement completed in June 2011
• Facilities upgrade planning underway
• Future potential in EOR and deeper targets
• Current production of approx 225 bopd
• Oil sold a fuel oil to industrial users
• Major EOR program to increase recovery to ~30%
• Oil sales agreement with BP to handle higher output

Adjacent Exploration Acreage (100% LGO)

• Combined acreage of 556 sq.kms with several undeveloped oil and gas discoveries
• Contingent and prospective resources of mean 13 mmboe
• Trial production operations has been undertaken at the Hontomin discovery where well H-2 has been recompleted and placed on long-term test
• A carbon dioxide storage project has been initiated with CIUDEN at Hontomin to test the viability of a CCS project in the Burgos area
• Studies have also considered potential uses for the small Tozo gas discovery within the LGO licence area
• A deeper proven reservoir in the Liassic below the productive Ayoluengo reservoir is being studied and appraisal drilling is planned
• The potential for unconventional shale gas reserves below LGO acreage is also under review as the Cantabrian Basin is a known area for the development of suitable shales at depth

Gulf of Mexico

LGO have been increasing both its assets and investment in its interests in the Gulf of Mexico over the past four years. Production and revenue come from the Eugene Island-184 field and the Ship Shoals development.

LGO originally acquired its GOM interests through a 29% participation in Byron Energy LLC, a private E&P company, but has subsequently converted its interest in Byron into a 7.25% direct participating interest in the leases. Net revenue interests vary from block to block in the range 2.5 to 6.0%.

The Company also holds a number of options through a Strategic Scouting Agreement to acquire further interests in Marlin and Byron leases should development activities be undertaken.

Current Production & Development 

Total 2010 production net to LGO’s interest was 6,617 bbls of oil and 37.8 mmscf of gas (12,913 boe). Additional potential exists at Eugene Island to recomplete existing wells or to sidetrack wells to undepleted zones. LGO and its partners are actively studying these options. Further development wells in a number of the leases are also possible and could give attractive rates of return on additional investment. 

Malta Southern Offshore (10% LGO)

• High potential exploration play in highly prospective oil and gas basin in proximity to Tunisia and Libya active petroleum basins
• Major seismic interpretation executed on the 5700 sq km PSC area
• Identified four prospects and five leads with gross mean 2P STOIIP of 5 billion barrels and recoverable reserves of 1.475 billion barrels
• PSC signed with the Maltese Government to drill well on Area 4 (South Offshore Malta) to depth of 2500m. Currently targeting high chance of success drilling locations

Mr David Lenigas, Executive Chairman, Age: 50

Mr. Lenigas holds a Bachelor of Applied Science Degree in Mining Engineering. Currently the Executive Chairman of Lonrho plc, Lonrho Mining plc and Lonzim plc. He is also a Director of CSS-Stellar plc, a Non Executive Director of Rare Earth Minerals plc and Vatukoula Gold Mines plc.

Previously Mr. Lenigas held the position of Chairman of Mediterranean Oil and Gas plc, which is producing gas and condensate in Italy and holds extensive oil and gas resources in Italy, Malta, Tunisia and France.

Mr. Neil Ritson, Chief Executive Officer, Age: 56

Mr. Ritson holds a Bachelors degree in Geophysics. He has worked in the energy sector of over 33 years, initially with BP plc, where he held the roles of International Chief Geophysicist, Head of Geoscience Research and Business Unit Leader for both Norway and Alaska Exploration. 

Subsequently Mr. Ritson managed the international operations of Burlington Resources Inc. and more recently he was CEO at Regal Petroleum plc before founding the Vanguard Energy Group where he was Chairman and CEO.

Mr. Steve Horton, Non Executive Director, Age: 58

Mr. Horton holds a Bachelor of Science degree in Mining Engineering and a Master of Science in Business Administration. Mr. Horton has 34 years experience working in the energy industry around the world, including 27 years with BP plc where he held several executive roles including worldwide Director of Drilling. 

He co-founded Silverstone Energy Limited in 2005, a North Sea focused exploration and production company, which grew from start-up through operated exploration and development to production within four years.

Updated from Leni Gas & Oil website 05.04.2012