15th Nov 2007 14:27
Leni Gas & Oil PLC15 November 2007 For Immediate Release 15 November 2007 Leni Gas & Oil Plc ("Leni Gas" or the "Company") Completes Acquisition of First Producing Asset and Agrees Issue of Equity Further to announcements made by the Company on 25 October 2007 and 12 November2007 in relation to the proposed acquisition of Compania Petrolifera de Sedano,S.L ("CpS"), the Company today announces that all conditions precedent in theAcquisition Agreement have been completed. Under the terms of the Acquisition Agreement, the Company has today: 1) issued the Consideration Shares being 8 million ordinary shares of 0.05p eachin the capital of Company and has applied for these shares to be admitted totrading on AIM for Friday 16 November 2007; 2) acquired the entire issued share capital of CpS, whose major assets include88.75% beneficial interest in the La Lora License (which within lies theAyoluengo Field) and a 50% interest in certain exploration licenses within theJunta de Castilla y Leon in the Province of Burgos in Spain corresponding to thepermits "Huermeces, Valderredible and Basconcillos"; 3) been notified that approximately 11,600 barrels of oil and 4,200 mscf of gashave been produced in respect of the Ayoluengo Field since 1 August 2007 whichwill accrue to the Company's account. Accordingly, a total of 393,400,027 Ordinary Shares of 0.05p each will commencetrading on AiM with effect from 16 November 2007 following the reversetransaction. The Company further advises that it has formally engaged TRACSInternational Consultancy Limited ("Tracs"), an independent consultancyspecialising in petroleum reservoir evaluation and economic analysis. Tracs havealready commenced an initial immediate strategic review of the Ayoluengo Fieldto establish ways to enhance current production and increase recoverablereserves via technical evaluation. David Lenigas, Executive Chairman, commented: "The acquisition of CpS assets in Northern Spain and associated explorationlicences is a significant milestone for the Company. The completion of this acquisition and the potential of significantly increasingproduction from the Ayoleungo Field demonstrates our stated strategy ofacquiring producing assets as well as advanced exploration plays. We look forward to working with Tracs to maximise the value of this field overthe coming year. For further information, please contact: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 NOTES TO EDITORS On 25 October Leni Gas & Oil Plc entered into an agreement with Ascent ResourcesPlc to purchase the entire issued share capital of Compagnine Petrolifera deSedano ("CpS") and the La Lora Licence and three Exploration Licences (Huermeces, Valderredible and Basconcillos-H) for EUR 2,250,000 and 8 MillionOrdinary Shares of Leni Gas & Oil Plc which will satisfy the consideration andthe repayment of inter-company loans. The business of CpS at present consists of exploration and production of oil andgas in Spain. The Ayoleungo field in particularly is currently producing 110bopd net to Leni Gas & Oil Plc. The Acquisition Agreement includes an option granted to the Company by AscentResources to acquire a 40 per cent participating interest in the interest heldby Ascent Resources in the. Seeland-Frienisberg gas permit, Switzerland This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CERP.L