28th Sep 2009 07:00
LENI GAS & OIL Plc
("LGO" or "The Company")
28 September, 2009
Hungary - Penészlek Development Expansion
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company today announces that PetroHungaria kft (LGO 7.27%) has commenced a further sidetrack of the Pen-104 well ('Pen-104AA') to test a substantial Miocene volcaniclastic prospect in the Penészlek Development Area of eastern Hungary.
The sidetrack, identified on 3D seismic acquired last year, will be drilled from the existing Pen-104A wellbore on essentially the same trajectory as Pen-104A to a total depth of 1,358 metres true vertical depth. The drilling rig undertaking the operation has been redeployed close to the Pen-104 location from the recently completed and successful Pen-105 well close. The Company considers drilling the second sidetrack of Pen-104 to be opportune due to the immediate availability of the drilling rig and the current producing Pen-104A well approaching the economic limits of maximum recovery.
Pen-104A is a sidetrack of the original Penészlek producer, Pen-104, and was drilled to recover gas from an undrained fault compartment in the Pannonian Sands identified on 3D seismic. The combined production to date from Pen-104 and Pen-104A is approximately 1.0 bcf.
David Lenigas, Executive Chairman, commented:
"LGO look forward to successful deepening of the Pen-104 prospect after successful completion and testing of the Pen-105 well earlier this month. The additional sidetrack shall increase the reserve potential of Pen-104 and we anticipate the well returning to production within a month."
Competent Person's Statement:
The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Executive Director 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 DirectorTel +44 (0) 20 7016 5103
Beaumont Cornish Limited Roland Cornish / Rosalind Hill Abrahams Tel +44 (0) 20 7628 3396
Mirabaud Securities LimitedRory ScottTel +44 (0) 20 7878 3360
Pelham PR Mark Antelme / Henry LerwillTel + 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. 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, Trinidad, Hungary and Malta with significant play upside using similar strategies to leverage 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 programs.
GLOSSARY
bcf billion cubic feet of gas
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