9th Jun 2011 07:00
For Immediate Release (7 am)
9 June 2011
LENI GAS AND OIL PLC
("LGO" or the "Company")
Gulf of Mexico Production
Leni Gas & Oil plc today announces resumption of production from the Eugene Island-184 ("EI-184") platform in the Gulf of Mexico.
Production operations were resumed safely on 3 June 2011 at the EI-184 facilities following the transfer of operatorship to Marlin Energy LLP ("Marlin") as previously announced in late May. All previously active wells (A1, A3, A4, A5 and A8) were returned to production and operational reporting to the Joint Venture partners has now been resumed.
During the initial five day ramp up period; gross physical production has averaged 1,199 mcfpd and 402 bopd (609 boepd). Once downtime is accounted for, this equates to an average daily rate of approximately 922 boepd. LGO holds a 7.25% working interest in the EI-184 field..
Early indications are that production has been re-established at higher than pre-shut down levels, however, stabilised rates are not yet available and some flush production after a 60 day shut-in period would be expected.
Neil Ritson, LGO's Chief Executive, commented: "We are pleased that production and revenue has been restored so quickly and that all the wells have come back on-line after the shut-down. We now look forward to working with the new operator to plan for sidetracking and recompleting wells in the field to increase production."
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc who has 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.
Enquiries:
Leni Gas & Oil plc
David Lenigas, Executive Chairman
Neil Ritson, Chief Executive Officer
Tel +44 (0) 20 7016 5103
Panmure Gordon plc
Katherine Roe / Hannah Woodley
Tel +44 (0)20 7459 5744
Beaumont Cornish Limited
Roland Cornish / Rosalind Hill Abrahams
Tel +44 (0) 20 7628 3396
Pelham Bell Pottinger
Mark Antelme / Henry Lerwill
Tel + 44 (0)20 7861 3232
Glossary
mcfpd - million cubic feet per day
bopd - barrels oil per day
boepd - barrels oil equivalent per day
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. LGO's strategy is to acquire projects and businesses within the oil and gas sector that contain a development premium which can be unlocked through a combination of financial, commercial, and technical expertise.
LGO operates a low risk portfolio of production expansion assets in the US Gulf of Mexico, Spain and Trinidad, and holds non-operated exploration acreage Malta. LGO's assets have significant play upside using strategies which leverage novel extraction technologies and proven production enhancement techniques. LGO specifically targets near term production with upside exploitation potential and manages its portfolio to ensure all assets have accelerated incremental reserves and production enhancement programmes.
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