12th Aug 2008 10:15
For immediate release 12 August 2008
Leni Gas & Oil Plc
("Leni Gas and Oil" or "the Company")
Gas production commences in Hungary
Leni Gas & Oil plc, the oil & gas exploration, development and production company, today commenced gas production at the PEN-104 well in the Penészlek area of the Nyírség permits in Hungary. The production rate of the well is currently 48,000 cu.m of gas with a wellhead pressure of 92 bar. The rate will gradually be increased over the next few days to a target of 85,000 cu.m per day (3 MMscfd; 500 boepd).
The PEN-104 well was drilled in 2006 and the gas production, after metering at the PEN-104 facility, is transported by pipeline to the MOL gas processing facility at Hajdúszoboszló, in north east Hungary.
Leni Gas and Oil has a 7.27% interest in the project through its equity interest in PetroHungaria kft, other partners are DualEx (37.5%), Geomega (8%), Ascent Resources (45.23%) and Swede Resources (2%).
Future plans for the Penészlek development area include the acquisition of a 3-D seismic survey with the objective of delineating other gas reservoirs in the vicinity. Two wells in the area, PEN-9 and PEN 12, have tested gas but have not yet been put on production and the Penészlek field which produced gas between 1983 and 1991 is a candidate for redevelopment.
Competent Person's Statement:
The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Director of Operations for Leni Gas & Oil plc (member of the SPE) who has 20 years relevant experience in the oil industry.
David Lenigas, Executive Chairman, commented:
"Commencement of gas production at the Penészlek field is major milestone for the company, as our first gas production asset, adding to our existing oil production in both Spain and Trinidad.
The Penészlek development area has tremendous enhancement potential, and we anticipate additional prospects, once appraised and completed, to be connected into the new production facilities recently commissioned for this new development."
For further information visit www.lenigasandoil.co.uk or contact:
David Lenigas Leni Gas & Oil Plc Tel: +44 (0)20 016 5100
Charles Vivian Pelham PR Tel: +44 (0)20 7743 6672
Roland Cornish Beaumont Cornish Limited Tel: +44 (0)20 7628 3396
Rosalind Hill Abrahams Tel: +44 (0)20 7628 3396
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