19th Aug 2008 12:25
For Immediate Release
19 August 2008
LENI GAS & OIL Plc
("Leni" or "The Company")
Hungary Gas production update
Leni Gas & Oil Plc, the oil & gas exploration, development and production company, today confirms that gas production at the PEN-104 well in the Penészlek area of the Nyírség permits in Hungary has reached a stabilised average rate of 88,200 cu.m per day (3.12 MMscfd; 520 boepd).
The Company 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%).
David Lenigas, Executive Chairman, commented:
"Since we recently announced the commencement of gas production at the Penészlek field, the Company is very pleased with the stabilised average daily rate, which exceeds the original target of 85,000 cu.m per day."
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.
Enquiries:
Leni Gas & Oil PLC
David Lenigas, Executive Chairman
Tel +44 (0) 20 7016 5100
Beaumont Cornish Limited
Roland Cornish
Rosalind Hill Abrahams
Tel +44 (0) 20 7628 3396
Pelham PR Mark AntelmeTel + 44 (0)20 3178 6242
Katherine Stewart
Tel +44 (0)20 3170 7439
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 Gulf of Mexico, Spain, Trinidad, Hungary and Malta. Leni's strategy is delivering growth through the acquisition of proven reserves and the enhancement of producing assets in low risk countries.
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.
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.
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