Leni Gas & Oil’s (LON:LGO) change of focus to Trinidad saw the company's oil production grow by over 50% year-on-year in the first half of 2013.
Executive chairman David Lenigas said the trend of increased production will continue for the rest of the year.
Production increased steadily at the recently acquired Goudron Field in Eastern Trinidad from 105 barrels of oil per day (bopd) at the end of 2012 to 260 bopd at the end of the half-year, and is now up to 349 bopd.
Sales in the first half of the year totalled 27,289 barrels of oil. Company-wide sales, net to Leni Gas’s interest, totalled 45,969 barrels of oil, up 52% from 30,155 barrels oil equivalent in the first half of last year.
During the reporting period Spanish oil sales from the Ayoluengo Field totalled 16,179 barrels of oil; however, no sales were made in June due to planned maintenance work by the buyer. June production was held in stock and sold in August.
Revenue during the six months to the end of June rose to £2.31mln from £1.75mln the year before, while the pre-tax loss widened to £1.39mln from £971,000, largely as a result of higher costs arising from the development of the Goudron asset, but also because of exceptional items, including the costs associated with debt financing and the legal case against Mediterranean Oil and Gas.
Chairman Lenigas said the company is moving rapidly towards a more secure debt funding model and this will improve shareholder returns in the future.
“Our assets in Trinidad, and to a lesser extent in Spain, have numerous reinvestment opportunities and we will be energetically pursuing those, whilst also building medium and longer term growth opportunities in Trinidad,” Lenigas said.
“LGO, as a group, is producing 400 barrels of oil a day and has in excess of 10 million barrels of proven and probable reserves. With the access to capital that senior secured debt will provide we have an exciting and profitable future mapped out for the company," he added.