9th Jan 2009 07:00
LENI GAS & OIL PLC
9th January 2009
MONTHLY PRODUCTION UPDATE - DECEMBER
NET PRODUCTION INCREASES BY 65% TO 8000 BOE EXCLUDING GULF OF MEXICO
Leni Gas & Oil plc (LGO), the AIM listed international oil and gas exploration, development and production company, today gives its monthly production update for December 2008.
During December monthly production totalled 8069 boe excluding the interests in the US Gulf of Mexico and Lower 48. The monthly production update from all countries of operation is summarised as follows:
Spain
The Ayoluengo Oilfield (100% LGO) in northern Spain, through LGO's 100% ownership of Compañia Petrolifera de Sedano, S.L. produced net to LGO 6,700 bbls and 1.105 mmscf of gas during the month. Net LGO production in barrels of oil equivalent totalled 6885 boe. Production was over 130% higher on the previous month and 110% higher on historical plateau production as most of the wells intervened for the first phase stimulation program were returned to production.
Trinidad
The Icacos Oilfield (50% LGO rights) located on the Cedros Peninsula of Trinidad, through LGO's 100% ownership of Eastern Petroleum (Australia) P/L produced gross 800 bbls during the month. The Oilfield produces no gas. Net LGO production in barrels of oil equivalent totalled 400 boe.
Hungary
The Penészlek Gasfield (7.27% LGO) in eastern Hungary, through LGO's 7.27% ownership of PetroHungaria Kft produced net to LGO 4.698 mmscf of gas and 1 bbl of condensate during the month. The Gasfield produces no oil. Net LGO production in barrels of oil equivalent totalled 784 boe. The interests in ZalaGasCo Kft (14.74%) LGO) in western Hungary will be announced in due course.
US Gulf of Mexico & Lower 48
The interests held by Byron Energy (28.94% LGO) in the US Gulf of Mexico and Lower 48 will be officially announced in due course Further to the announcement on 06 January of the successful completion and testing of the A-8 well on Eugene Island, production through the production facilities now totals volumes from wells A-6, A-7 and A-8. Well A-8 was successfully tested at 2,557 boepd and well A-7 was previously tested at 4,012 boepd as reported on 06 October 2008. LGO's interest in Eugene Island approximates to an effective net working interest of 8%.
David Lenigas, Executive Chairman, commented:
""December reported a major increase in the Company production schedule of 65% above November with production from Spain more than doubling as most of the wells intervened for the successful stimulation program in October and November were returned to production. Trinidad delivered similar volumes as last month while Hungary observed a reduction to choke water production.
"The production schedule step change is a very positive start to 2009 for LGO as the initial results of our Spain enhanced recovery program are steadily realised. Together with the estimated net production from the US Gulf of Mexico, the Company now has effective net daily production of over 700 boe and over 21,000 boe per month."
Competent Person's Statement:
The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Director of 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
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.
GLOSSARY
boe = barrels of oil equivalent calculated on the basis of one thousand cubic feet of gas equals one barrel of oil
boepd = boe per day
bbls = barrels of oil
bopd = barrels of oil per day
mmscf = million standard cubic feet of gas per day
mmscfd = mmscf per day
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