16th Apr 2009 13:31
LENI GAS & OIL Plc
("LGO" or "The Company")
16 April, 2009
Gulf of Mexico - acquisition of the Ship Shoal Block 202 lease
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company notes today's update from Leed Petroleum ("Leed"), confirming the acquisition of the Ship Shoal Block 202 lease from Mariner Energy, Inc., for a gross consideration of US$150,000.
The Ship Shoal 202 lease covers an area of approximately 20.23 square kilometres and is located in a very prolific area of the Gulf of Mexico. The lease has four years remaining on its current primary term, in which Leed intends to develop it into a further producing asset.
The lease is adjacent to the Ship Shoal 201 Block, which Leed already owns and operates. The 201 lease is a high potential block, with predominantly oil bearing prospective reservoirs and is a low cost development opportunity for the Company.
In accordance with an area of mutual interest agreement arising under Leed's pre-existing scouting agreement with Byron Energy Pty. Ltd. ("Byron"), Byron will have the right to acquire up to 25% of Leed's working interest in the block (the "Option Right"). Byron has informed the management of Leed that it intends to participate in the transaction, with a proposed gross interest of 25%, thus leaving Leed with a remaining 75% interest in Block 202.
As announced on 08 April 2009, LGO has completed a Heads of Agreement with Byron Energy Pty Ltd ("Byron Energy") to transfer the Company's 28.94% shareholding in Byron Energy from an indirect to a direct ownership of its US Gulf of Mexico ("GoM") oil and gas assets. This transfer is subject to Byron Energy shareholder approval; LGO qualifying under Mineral Management Service requirements to acquire the working interests in the Eugene Island assets and compliance to AIM rules.
David Lenigas, Executive Chairman, commented:
"Following our recent milestone announcement to convert our Byron shareholding to direct working interests in the Gulf of Mexico portfolio, today's announcement is excellent news for expanding the acreage position. The Ship Shoal blocks have tremendous potential for significant increases to the portfolio production and are another step towards realising the value of our Gulf of Mexico acreage."
Competent Person's Statement:
The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Executive Director (Operations) for Leni Gas & Oil Plc (member of the SPE) who has 20 years relevant experience in the oil industry.
Enquiries:
Leni Gas & Oil plc
David Lenigas, Executive Chairman
Tel +44 (0) 20 7016 5103
Beaumont Cornish Limited
Roland Cornish / Rosalind Hill Abrahams
Tel +44 (0) 20 7628 3396
Mirabaud Securities LimitedRory Scott
Tel +44 (0) 20 7878 3360
Pelham PR
Mark Antelme / Henry Lerwill
Tel + 44 (0)20 7337 1500
NOTES TO EDITORS
Leni Gas & Oil Plc is an international oil and gas exploration, development and production company headquartered in London, trading on the London Stock Exchange's AIM index. The Company has assets in the US GoM and Lower 48, Spain, Trinidad, Hungary and Malta. LGO's strategy is delivering growth through the acquisition of proven reserves and the enhancement of producing assets in low risk countries.
Leed Petroleum PLC today announced the following:
Leed Petroleum PLC
("Leed" or the "Company")
Acquisition
Leed Petroleum PLC (AIM: LDP), the oil and gas exploration and production company focused on the Gulf of Mexico, today announces the acquisition of the Ship Shoal Block 202 lease from Mariner Energy, Inc., for a gross consideration of US$150,000.
The Ship Shoal 202 lease covers an area of approximately 20.23 square kilometres and is located in a very prolific area of the Gulf of Mexico. The lease has four years remaining on its current primary term, in which Leed intends to develop it into a further producing asset.
The lease is adjacent to the Ship Shoal 201 Block, which Leed already owns and operates. The 201 lease is a high potential block, with predominantly oil bearing prospective reservoirs and is a low cost development opportunity for the Company.
In accordance with an area of mutual interest agreement arising under the Company's pre-existing scouting agreement with Byron Energy Pty. Ltd. ("Byron"), Byron will have the right to acquire up to 25% of the Company's working interest in the block (the "Option Right"). Byron Energy has informed the management of Leed that it intends to participate in the transaction, with a proposed gross interest of 25%, thus leaving Leed with a remaining 75% interest in Block 202.
Further details of this participation will be announced shortly.
Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented:
"Ship Shoal 202 provides Leed Petroleum with a further low cost development opportunity on which to broaden our resource and reserve base, and also establish more production. The lease is equally prospective to the 201 block. Our proposed drilling programme on the lease will be announced in due course."
Related Shares:
CERP.L