29th Jan 2008 07:00
Leni Gas & Oil PLC29 January 2008 For Immediate Release 29 January 2008 Leni Gas & Oil Plc ("Leni Gas" or the "Company") ACQUISITION OF PRODUCING ASSET IN TRINIDAD Further to the announcement made on 14 December 2007, the Company is pleased toannounce it has exercised its Option Agreement to purchase the entire sharecapital of Eastern Petroleum Australia Pty Ltd ("Eastern"). Eastern's main assetis a 25% interest in the Icacos Permit which is a 1,900 acre Icacos Oilfieldlocated on the Cedros Peninsula of Southern Trinidad, and lies within the EastVenezuelan Basin. Leni Gas has also purchased a further 25% interest in theIcacos permit from Kroes Energy Inc. ("Kroes") giving the Company a totalinterest of 50% in the field. This field adheres to the Company's investment strategy to acquire currentproduction with potential for improved production from the existing wells andlow-cost exploration. The field will be jointly owned with the operator of the field Primera Oil, anactive participant in the Trinidad petroleum industry. The field has producedoil since its discovery by Premier Oil in 1965, mostly 28API gravity crude, fromMiocene age sands of the Upper Cruse Formation at depths of typically between450 ft and 3,000 ft. The leases expire variously between 2023 and 2028. Current daily production for the total field is 31 barrels per day from only 3of 14 wells. It is the intention to increase this level utilising regular wellmaintenance and modernisation techniques. Previously producing wells are plannedto be reconditioned and others reopened to take advantage of renewed demand andpricing of oil. This acquisition brings Leni Gas's current daily production tosome 130 barrels. Unaudited accounts for Eastern indicate the following information (together withproforma figures doubled to illustrate a 50% interest in the field): 9 Months to 30 September 2007 Full year to 31 Dec 2006 25% Interest Proforma 50% 25% Interest Proforma 50% Interest Interest US$ US$ US$ US$ Gross Revenue 134,000 268,000 200,000 400,000Profit before 24,000 48,000 47,000 94,000taxNet Assets 500,000 1,000,000 490,000 980,000 No separate financial information is available in respect of the 25% interestpurchased from Kroes. Leni Gas has paid a total of US$1 million to be satisfied as to US$500,000 incash on completion and US$500,000 by the issue of 4 million new Lenigas OrdinaryShares of 0.05p each upon the vendor obtaining all necessary permissions andassignments. The Company will have the benefit of oil production income whichcommenced on 12th January 2008. David Lenigas, Executive Chairman, commented: "The acquisition of 50% of the producing Icacos oilfield in Trinidad providesthe Company with a foothold in one of the richest oil and gas bearing areas ofthe world. The potential of the Icacos Field fits with the Company's stated strategy ofproduction plus affordable exploration potential. The Company has commissioned TRACS International Consultancy Limited toundertake an immediate review of the Icacos Oilfield with the view toestablishing STOIIP and reserve estimates during the coming year." For further information, please contact: Enquiries:Leni Gas & Oil PLCDavid Lenigas, Executive Chairman Tel +44 (0) 20 7016 5100 Beaumont Cornish LimitedRoland Cornish Tel +44 (0) 20 7628 3396 Pelham PRCharles VivianEvgeniy Chuikov Tel + 44 (0)20 7743 667 Tel +44 (0)20 3008 5506 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CERP.L