21st Oct 2008 07:00
LENI GAS & OIL PLC
21 October, 2008
INCREASED OIL RESOURCES IDENTIFIED IN SPAIN
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company, today reports the results of the re-interpretation of the Company's exploration acreage in north-west Spain by Tracs International Limited (Tracs) as announced previously on 12 May 2008.
In total 10 prospects (of which two are historical oil discoveries and one a gas discovery not previously assessed) are identified across the acreage with a total unrisked mean STOIIP ("stock tank oil initially in place") of 74 mmb and GIIP ("gas initially in place") of 4bcf. The total mean contingent oil resources is 1.76 mmbo, mean contingent gas resources is 2.9 bcf and mean unrisked prospective oil resources is 10.6 mmbo.
The recoverable prospective and contingent resources across the 10 prospects have a total unrisked mean volume of 12.8 mmboe. These prospective and contingent resources are in addition to the recoverable reserves target from Ayoluengo of 10.4 mmboe.
LGO has an 85% interest in all the Spain Exploration Permits including the Basconcillos H, Huermeces and Valderredible acreage, with Tethys Oil Spain retaining the remaining 15% equity. The Exploration Permits cover 554 sq.km and surround the producing Ayoluengo oilfield in the La Lora production concession (100% LGO), which is currently undergoing multiple phase production enhancement programs.
Tracs executed a full technical assessment of the historical seismic and well data from the three Exploration Permits, as well as the La Lora production concession to the east of the producing Ayoluengo oilfield to identify all prospects and associated volumetrics.
The technical assessment included three main activities:
Review and assess all available area seismic, well information and existing discoveries to develop an integrated geoscience and reservoir model of all acreage.
Identify all exploration and development prospects with relative chance of success and probable volumetrics.
Based on similar analysis for Ayoluengo, develop a superset of exploitation options for the total acreage to both validate exploration prospectivity and propose near term developments for incremental production.
It is now recommended to commence the next phase of work which is to define and implement multiple programs until end Q2 2009 to test some of the identified prospects and execute detailed geological and fluid surveys to reduce the uncertainty on the recoverable resources estimates. These programs will identify those prospects with the highest chance of success for near term development in late 2009 and 2010.
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:
"This full re-evaluation of the exploration and near term development potential of our acreage surrounding the producing Ayoluengo oilfield validates the potential of the area.
"An additional unrisked mean prospective and contingent resources of 13 mmboe, which is similar in size to our incremental recovery target on Ayoluengo, re-inforces Spain as one of the main production vehicles of LGO.
"These halo incremental prospective resources could add to the Ayoluengo recoverable reserves which we shall report in coming weeks to launch the next few phases of enhanced production from Ayoluengo.
"On the basis of these findings, we shall now be undertaking various exploration activities on these prospects in parallel with the multiple Ayoluengo production enhancement programs, in order to identify the highest potential prospects for fast-track development and thus accelerate production from Spain."
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 and by Andy Spriggs, Managing Consultant at TRACS International Limited (member of the SPE and PESGB) who has 19 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
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 (Best Estimate) |
Net attributable (Best Estimate) |
Operator |
|
Oil & Liquids Contingent Resources per asset from development pending to developing not viable |
Discovery A (360,000) Discovery B (1,400,000) |
Discovery A (306,000) Discovery B (1,119,000) |
Compañia Petrolifera de Sedano, S.L. (wholly owned subsidiary of Leni Gas & Oil Plc) |
|
Total for Oil & Liquids |
1,760,000 |
1,425,000 |
|
|
Gas Contingent Resources per asset from development pending to development not viable |
Discovery C (2,900,000,000) |
Discovery C (2,465,000,000) |
Compañia Petrolifera de Sedano, S.L. (wholly owned subsidiary of Leni Gas & Oil Plc) |
|
Total for Gas |
2,900,000,000 |
2,465,000,000 |
|
|
Unrisked Prospective Resources |
|||
|
(all figures in bbls or scf) |
Gross (Best Estimate) |
Net attributable (Best Estimate) |
Operator |
|
Oil & Liquids Prospective Resources per asset from prospect to play |
Lead 1 (710,000) Lead 2 (510,000) Lead 3 (1,470,000) Lead 4 (2,350,000) Lead 5 (2,750,000) Lead 6 (2,250,000) Lead 7 (530,000) |
Lead 1 (603,500) Lead 2 (433,500) Lead 3 (1,249,500) Lead 4 (1,997,500) Lead 5 (2,337,500) Lead 6 (1,912,500) Lead 7 (450,500) |
Compañia Petrolifera de Sedano, S.L. (wholly owned subsidiary of Leni Gas & Oil Plc) |
|
Total for Oil & Liquids |
10,570,000 |
8,984,500 |
|
|
Gas Prospective Resources per asset from prospect to play |
None |
None |
|
|
Total for Gas |
None |
None |
|
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