25th Feb 2009 09:09
LENI GAS & OIL Plc
("LGO" or "The Company")
25 February, 2009
Significant Increase to Gulf of Mexico Oil & Gas Production
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company notes today's update by the joint venture operator, Leed Petroleum ("LDP"), announcing the results of the A-6 well recompletion for the Eugene Island. The well's primary zone commenced testing on 16 February 2009 and, following a clean-up period, has consistently flowed to sales at a stable restricted rate of 1,750 boepd. Immediately, prior to recompletion, the A-6 well was flowing at approximately 500 boepd. Field production increased 20% to approximately 6,000 boepd (gross).
The Eugene Island acreage is operated by Leed Petroleum in which LGO has an indirect interest through its 28.94% holding in Byron Energy Pty Ltd ("Byron").
David Lenigas, Executive Chairman, commented:
"Today's announcement regarding the Eugene Island A-6 well is a very significant increase in Gulf of Mexico production for Leni Gas & Oil. It realises another step change to the company's production schedule and exceeds the original expectations of the acreage."
"With no debt and increasing profitable production across our portfolio in Gulf of Mexico, Spain, Trinidad and Hungary, the Company now has effective net production of over 800 boepd, an increase of 15% from last month. This production schedule shall soon increase again with another step change in Spain production due to be announced in a few weeks."
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.
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.
The Eugene Island acreage is operated by Leed Petroleum, in which LGO has an indirect interest through its 28.94% holding in Byron Energy Pty Ltd ("Byron"). Byron has a 25% Working Interest in both Eugene Island Blocks 183 and the southern half of Block 184 (Net Revenue Interest up to 20.83% in Block 183 and 19.17% in the southern half of Block 184), including the Eugene Island 184A platform and production facilities. Byron has also a 12.5% Working Interest (Net Revenue Interest 9.58%) in the northern half Eugene Island Block 184 and 10.37% Working Interest (Net Revenue Interest 8.64%) in Eugene Island Block 172, excluding the Eugene Island 172 producing reserves and platform.
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
Leed Petroleum PLC today announced the following:
Leed Petroleum PLC
("Leed" or the "Company")
Eugene Island A-6 Well Recompletion
Total field production increased 20% to approximately 6,000 boepd (gross)
Leed Petroleum PLC (AIM: LDP), the oil and gas exploration and production company focused on the Gulf of Mexico, today announces the results of the A-6 well recompletion for the Eugene Island field.
The Eugene Island A-6 well has been successfully recompleted as a long term producer from the well's primary zone. This zone commenced testing on 16 February 2009 and, following a clean-up period, has consistently flowed to sales at a stable restricted rate of 1,750 boepd. Immediately, prior to recompletion, the A-6 well was flowing at approximately 500 boepd. The Company has also now completed the upgrade of platform water handling facilities.
Field production is currently stable at 6,000 boepd gross (4,500 boepd on a working interest basis) with all three recently drilled wells contributing significantly.
Howard Wilson, President and Chief Executive of Leed, commented:
"Production from the newly recompleted Eugene Island A-6 well concludes the Company's near term work programme for the Eugene Island field. The three successful wells have had a major impact on the Company's reserves and should make substantial contributions to the Company's revenue stream for years to come. When compared to the field's production rate at the time of admission to AIM of 360 boepd, the current rate demonstrates the tremendous success the Company has achieved thus far."
Notes to Editors:
Review by a qualified person
The information contained in this announcement has been reviewed and approved by Chris Thompson, Manager of Business Development at the Company, BSC GradDip, who is a reservoir engineer (SPE) with over 16 years experience within the sector.
Operations
Leed Petroleum PLC is an AIM quoted independent oil and gas exploration and production company. The Company's operations are concentrated in the Gulf of Mexico region where Leed has established a significant portfolio of producing and development assets. The Company has interests in 17 offshore fields and one onshore field in the region.
Leed's strategy is to grow the Company's portfolio through organic development of its existing assets and to utilise its regional expertise to identify and purchase value adding assets.
Glossary
boepd - barrels of oil equivalent per day, calculated on the basis of one thousand cubic feet of gas equals one barrel of oil
Related Shares:
CERP.L