11th May 2009 08:16
LENI GAS & OIL Plc
("LGO" or "The Company")
11 May, 2009
Gulf of Mexico - Leed Petroleum's RNS statement re possible offer
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company notes a statement made last Friday the 8th May 2009 from Leed Petroleum ("Leed") on RNS, that it has received an unsolicited letter from an independent oil and gas company listed on the New York Stock Exchange which may or may not lead to an offer for Leed.
LGO owns 28.94% of Byron Energy Pty Ltd ("Byron"), which is party to a Scouting Agreement with Leed under which Byron Energy presented Leed with oil and gas acquisition opportunities. Notwithstanding that the Scouting Agreement expired on 31 December 2008, Byron Energy retains the option to acquire up to 25% in Leed's working interest in all assets and any blocks Leed acquires adjacent to these option assets.
Leed's operations are concentrated in the Gulf of Mexico ("GoM") region where Leed has established a significant portfolio of producing and development assets. Leed has interests in 17 offshore fields and one onshore field in the region.
On 25 February 2009, Leed announced that Eugene Island field production was approximately 6,000 barrels oil equivalent per day (gross).
The Eugene Island acreage is operated by Leed, in which LGO has an indirect interest through its 28.94% holding in 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 also has a 12.5% Working Interest (Net Revenue Interest 9.58%) in the northern half Eugene Island Block 184 and a 10.37% Working Interest (Net Revenue Interest 8.64%) in Eugene Island Block 172, excluding the Eugene Island 172 producing reserves and platform.
As announced on 08 April 2009, LGO has completed a Heads of Agreement with Byron to transfer the Company's 28.94% shareholding in Byron from an indirect to a direct ownership of its GoM oil and gas assets. This transfer is subject to Byron Energy shareholder approval; LGO qualifying under Mineral Management Service requirements to acquire the working interests in the Eugene Island assets and compliance to AIM rules.
David Lenigas, Executive Chairman, commented:
"The Leed Petroleum News Release of late last Friday is something that Leni Gas and Oil plc will be monitoring closely, as Leed is the operator of our US Gulf of Mexico production and exploration assets."
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 7337 1500
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 GoM 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.
Leed Petroleum PLC announced the following last Friday the 8 May 2009:
Leed Petroleum PLC
("Leed" or "the Company")
Statement re Possible Offer
The Board of Leed notes the recent movement in its share price and announces that it has received an unsolicited letter from an independent oil and gas company listed on the New York Stock Exchange which states, inter alia, that this company:
"delivers this letter of interest (this "Letter") indicating its interest with respect to a possible transaction (a "Transaction") involving the purchase of stock of Leed Petroleum PLC ("Leed"), on the preliminary basis of a range of $0.25 to $0.38 per share".
The intention of this letter is unclear and the Board is currently attempting to make contact with the third party with a view to establishing the meaning and intent of the letter and whether it is in fact an approach that may or may not lead to an offer for the Company.
If it is established that this is an approach which may lead to a potential offer for the Company, the Board and its advisers, Matrix Corporate Capital LLP, believe that such a price is hopelessly inadequate and seriously undervalues the Company. The Board also notes that the price quoted in the letter is expressed in Dollar terms and the shares in Leed are quoted on AIM in Pounds Sterling.
This announcement has not been made with the agreement or approval of the potential offeror and there can be no certainty that an offer will be made or as to the terms on which any offer might be made.
A further announcement will be made in due course.
END
Related Shares:
CERP.L