5th Mar 2009 14:59
5 March 2009
LENI GAS & OIL PLC
MONTHLY PRODUCTION UPDATE - FEBRUARY
DAILY PRODUCTION INCREASES BY 20% IN GULF OF MEXICO AND SPAIN
Leni Gas & Oil plc (LGO), the AIM listed international oil and gas exploration, development and production company, today gives its monthly production update for February 2009.
During February the Company's direct and indirect monthly production totalled 19,045 boe which was only slightly reduced from January due to planned work programs in all countries of operations and a shorter working month. 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 5,346 bbls and 0.896 mmscf of gas during the month. Net LGO production in barrels of oil equivalent totalled 5,495. Monthly production was lower than the previous month due to the commencement of the second stage of the field stimulation program which shall continue until the end of March. Initial results from this program stage are realising 20-40% increases in individual well production with February closing at almost 300 bopd with several wells offline.
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 999 bbls during the month. The Oilfield produces no gas. Net LGO production in barrels of oil equivalent totalled 500.
Hungary
The Penészlek Gasfield (7.27% LGO) in eastern Hungary, through LGO's 7.27% ownership of PetroHungaria Kft is currently shut-in due to the failure of a compressor at the downstream gas processing facility. The facility is scheduled to be online in March when the production well shall be tested prior to a scheduled 450m sidetrack of the well to substantially increase the potential recoverable gas and reduce the amount of water produced by the well. The production schedule of 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 is now producing approximately 6000 boepd gross from the Eugene Island field as announced by the joint venture operator on 25 February. LGO's indirect interest in the Eugene Island field through Byron Energy approximates to an effective net LGO monthly production in barrels of oil equivalent totalling 13,050. Production was almost 20% greater than last month with the Eugene Island A-6 well coming onstream after a successful re-completion which was tested at a stabilised rate of 1,750 boepd as announced on 25 February.
David Lenigas, Executive Chairman, commented:
"February saw a 20% increase in daily well production in the Gulf of Mexico, following the successful re-completion in Eugene Island,. In Spain, initial results from the commencement of the next stage of the well stimulation program at Ayoluengo are very positive with individual well production realising 20-40% increases. Trinidad delivered similar volumes to last month while Hungary was shut-in with the third party processing facilities temporarily shutdown for repair.
"The increased production in Gulf of Mexico completes the first stage of the Eugene Island development program and will contribute a very significant percentage of LGO's attributable production schedule during 2009. Commencement of the next stage of well stimulation activity in Spain continues the multiple phase development program to fully rehabilitate all wells and optimise all production facilities which will see another step change in Spain production by the end of March."
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
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.
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.
GLOSSARY
boe = barrels of oil equivalent calculated on the basis of six 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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