5th May 2009 11:25
LENI GAS & OIL Plc
("LGO" or "The Company")
05 May, 2009
Hungary - Increased Production & Resources
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company today announces PetroHungaria kft (LGO 7.27%) has successfully stabilised production from the Pen-104a gas production well at a restricted rate of gross 3 mmscfd in the Penészlek Development Area of eastern Hungary.
As announced on 20 April 2009, the Pen-104a sidetrack targeted reserves in the higher part of the structure to maximise recovery of the mean contingent resources of 1.1 bcf. The sidetrack well drilled the target reservoir sands as planned, was tested at approximately gross 2.5 mmscfd and immediately connected to the existing production and transportation infrastructure for gas sales production.
Further to the announcement on 19 March, the total resources for the Penészlek Development Area have also been revised. The study by Tracs International assessed five possible drilling locations in the Penészlek Development Area and has increased the GIIP and contingent resources. The revised resources are :
Gross unrisked mean contingent gas resources is increased from 2.57 bcf to 4.87 bcf
Gross unrisked mean prospective gas resources remain the same at 4.65 bcf.
The PetroHungaria kft joint venture are currently planning and permitting the next well in the schedule and shall announce in due course the development plan for all remaining Penészlek Development Area resources.
David Lenigas, Executive Chairman, commented:
"LGO are very pleased to report the stabilised production rate for Pen104 as well as an increased resources assessment for the East Hungary asset."
"The Penészlek Development Area is a key multiple resources asset which shall be considerably expanded during 2009 and we look forward to reporting further production increases and sustainable gas sales cashflows during the year."
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
Fraser Pritchard, Executive Director (Operations)
Tel +44 (0) 20 7016 5103
Beaumont Cornish Limited
Roland Cornish / Rosalind Hill Abrahams
Tel +44 (0) 20 7628 3396
Mirabaud Securities Limited
Rory Scott
Tel +44 (0) 20 7878 3360
Pelham PR
Mark Antelme / Henry Lerwill
Tel + 44 (0)20 3178 6242
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 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.
In compliance with AIM requirements, the unrisked contingent resources and prospective resources are summarised in the following tables:
|
Unrisked Contingent Resources |
|||
|
(all figures in bbls or scf) |
Gross (Mean Estimate) |
Net attributable (Mean Estimate) |
Operator |
|
Oil & Liquids Contingent Resources per asset from development pending to developing not viable |
None |
None |
|
|
Total for Oil & Liquids |
None |
None |
|
|
Gas Contingent Resources per asset from development pending to development not viable |
Pen 12 (1,460,000,000) Pen 104 (1,110,000,000) Pen 9 (2,300,000,000) |
Pen 12 (106,142,000) Pen 104 (80,697,000) Pen 9 (167,210,000) |
PetroHungaria Kft (7.27% owned subsidiary of Leni Gas & Oil plc) |
|
Total for Gas |
4,870,000,000 |
354,049,000 |
|
|
Unrisked Prospective Resources |
|||
|
(all figures in bbls or scf) |
Gross (Mean Estimate) |
Net attributable (Mean Estimate) |
Operator |
|
Oil & Liquids Prospective Resources per asset from prospect to play |
None |
None |
|
|
Total for Oil & Liquids |
None |
None |
|
|
Gas Prospective Resources per asset from prospect to play |
Pen 9 (900,000,000) Pen 102 (1,320,000,000) Pen 12 twin (2,430,000,000) |
Pen 9 (65,430,000) Pen 102 (95,964,000) Pen 12 twin (176,661,000) |
PetroHungaria Kft (7.27% owned subsidiary of Leni Gas & Oil plc) |
|
Total for Gas |
4,650,000,000 |
338,055,000 |
|
GLOSSARY
AIM = London Stock Exchange Alternative Investment Market
bbl = barrels of oil
bcf = billion cubic feet
contingent resources = those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations but which are not currently considered to be commercially recoverable.
GIIP = Gas Initially In Place
LGO = Leni Gas & Oil plc
mm = million
mmscf = million standard cubic feet of gas per day
mmscfd = mmscf per day
prospective resources = those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations
scf = standard cubic feet
All figures are net LGO unless otherwise stated
All reserves and resources definitions used are per the Society of Petroleum Engineers 2005 classification.
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