10 Jul 2012 07:00
Immediate Release (embargoed until 7 am)
10 July 2012
Leni Gas & Oil PLC
("LGO" or the "Company")
Goudron Field Update
LGO today announces completion of its initial work over program at the Goudron Field in south-eastern Trinidad.
The Company has now completed the first five planned workovers on the Goudron Field and has confirmed that an average production potential per well of 10 barrels of oil per day (bopd) is achievable from existing wells. Wells GY-63, 190, 245, 246 and 254 were cleaned, repaired and returned to pumping operations. The program was completed in 35 days at a cost of approximately $50,000 without any incident or accident.
The workover rig has now been temporarily demobilised whilst the transfer of the Incremental Production Service Contract (IPSC) is completed. The assignment of the IPSC has now received Trinidad and Tobago Ministry of Energy and Energy Affairs approval and final arrangements are now underway to complete the transfer to LGO's wholly owned subsidiary Goudron E&P Limited (GEPL).The transfer will trigger payment of outstanding considerations to Cameron Oil and Gas Limited and Sorgenia International BV which the Company is intending to finance out of the proceeds of the sale of the Spanish assets.
Following formal assignment of the IPSC to GEPL it is intended to expand the workover program and to commence detailed planning for new infill wells. The drilling of new wells will provide opportunities to test technologies in areas such as fracturing and sand control which are believed to offer significant potential for production and reserves growth.
The Company commissioned reserves report, the first independent assessment of reserves at Goudron, is expected to be completed in August.
Neil Ritson, LGO's Chief Executive, commented:
"We are entirely satisfied with the results so far and look forward to the larger production enhancement program that will start once field ownership is transferred. The drilling of new wells and the application of enhanced technology will significantly boost production."
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc who has over 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.
Enquiries:
Leni Gas & Oil plc
David Lenigas Neil Ritson | +44 (0)20 7440 0645
|
Beaumont Cornish Limited
Nomad and Joint Broker Rosalind Hill Abrahams Roland Cornish | +44(0) 20 7628 3396 |
Old Park Lane Capital Plc
Joint Broker Michael Parnes Luca Tenuta | +44(0) 20 7493 8188 |
Shore Capital
Joint Broker
Pascal Keane +44 (0) 20 7408 4090
Jerry Keen (Corporate Broking)
Pelham Bell Pottinger
Financial PR Mark Antelme | +44 (0) 20 7861 3232 |
Henry Lerwill |