LGO.L Share News (LGO)

Leni Gas & Oil (LGO) has ended its negotiations with Pansoinco over a possible partnership on its oil and gas assets located in Northern Spain. The group added that it had also stopped looking for any other interest, explaining that its plans for the assets include the anticipated award of a production concession at the prospective Hontomin field this year and additional well maintenance and stimulation of the producing wells at Ayoluengo Field. It said the Ayoluengo Field remains profitable and is confident that its 2014 production forecast will be met. The group added that it continued to be committed to the full optimisation of the value of Spain and strategic alliances have not been ruled out for the future.Chief Executive Officer Neil Ritson said: "In the light of the recently announced successful drilling and production results in Trinidad, the company has reassessed the benefits of the proposed partnership and is now firmly of the opinion that greater value can be obtained from the Spanish assets through LGO investing in additional well capacity in the period of 2016 to 2020, at a time when there is expected to be free cash flow available from the company's operations in Trinidad."The news drove shares 11.16% higher to 2.75p by 10:30 on Wednesday.NR