19th Mar 2009 11:54
LENI GAS & OIL Plc
("LGO" or "The Company")
19 March, 2009
Eastern Hungary - Maiden Development Resources Report
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company, today provides its first report on the remaining potential of the Penészlek Gas Field Development (7.27% LGO) in eastern Hungary.
Further to LGO's 21 January 2009 update on new developments in Hungary, a study recently completed by Tracs International assessed the five possible drilling locations in the Penészlek Gas Field. The total unrisked mean GIIP ("gas initially in place") from the five possible drilling locations is 11.27 bcf.
Of the proposed locations, Pen-104 and the re-drill of the Pen-12 are on previously tested structures proven to contain gas, hence are considered as contingent resources. The total unrisked mean contingent gas resources from these two locations is 2.57 bcf.
Pen-12 twin, Pen-102 and Pen-9 are considered prospective resources, as gas has not been proven in either the proposed structure or reservoir. The total unrisked mean prospective gas resources from these three locations is 4.65 bcf.
The assessment consisted of a petrophysical analysis of relevant wells, a review of the seismic interpretation, depth conversion of relevant seismic horizons and an estimation of GIIP and gas resources.
Furthermore, an announcement on the potential of the prematurely abandoned Penészlek Miocene field will be reported in the near term.
All reserves and resources definitions used are per the Society of Petroleum Engineers 2005 classification. Contingent Resources are 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. Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.
David Lenigas, Executive Chairman, commented:
"The independent assessment by Tracs International of the Penészlek Development Area further supports LGO's belief in the considerable potential of our eastern Hungary assets, from both the Miocene and Pannonian sands. Further development of the acreage is already underway and the assessment will now primarily be used to refine the planned development programmes and thereby increase the chances of significantly expanding production over the next twelve months."
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 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 12 (106,142,000) Pen 104 (80,697,000) |
PetroHungaria Kft (7.27% owned subsidiary of Leni Gas & Oil plc) |
|
Total for Gas |
2,570,000,000 |
186,839,000 |
|
|
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 |
|
Related Shares:
CERP.L