2nd Apr 2014 11:57
LONDON (Alliance News) - Leni Gas & Oil PLC Wednesday said it has concluded payments under its data agreement and started geochemical fieldwork for its Cedros Peninsula site in Trinidad.
The oil and gas exploration and development company said it has paid the final GBP125,000 worth tranche of 14.2 million shares to Beach Oilfield Ltd as part of a data agreement for Leni Gas to access geological, geophysical and well data in the area, bringing its total payment to GBP475,000.
The company noted that an ongoing final definitive agreement, which cross assigns all deep petroleum rights between the parties such that LGO would become 100% interest holder in all the private petroleum leases below 7,000 feet, is still being finalised as title due diligence has taken longer than was initially assumed.
Leni Gas & Oil said it will update on the progress of its agreement at the time of its annual general meeting but noted that its overall project timetable has not been affected by the delay.
The company said that data collection through geochemical soil sampling at the Cedros site is expected to be underway imminently and samples will be shipped to a laboratory in the USA for testing.
Leni Gas & Oil said the geochemical programme is estimated to cost GBP50,000 and to be completed by mid-year.
The company also added that it is in the final stages of negotiating with a specialist contractor for the acquisition of a wide scale airborne Full-Tensor Gravity survey to be flown over a large part of onshore Trinidad in a collaborative effort with the Ministry of Energy and Energy Affairs and several other active exploration and production companies in Trinidad.
Leni Gas & Oil said it hopes that the FTG data collection can start by end-May 2014 and that processed data will be available by the end of the third quarter.
The company said the costs of these projects has been so far been provided for within existing cashflow and short-term borrowing arrangements.
Leni Gas & Oil shares were trading flat at 0.680 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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