3rd Feb 2009 07:00
LENI GAS & OIL PLC
3rd February 2009
MONTHLY PRODUCTION UPDATE - JANUARY
NET PRODUCTION INCREASES BY 150% TO 20,020 BOE
Leni Gas & Oil plc (LGO), the AIM listed international oil and gas exploration, development and production company, today gives its monthly production update for January 2009.
During January monthly production totalled 20,020 boe. 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 7,125 bbls and 0.995 mmscf of gas during the month. Net LGO production in barrels of oil equivalent totalled 7291 boe. Production was almost 10% higher than the previous month and over 120% higher than historical plateau production. Oil sales attained a record of 6935 bbls representing an increase of over 100% on historical monthly oil sales.
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 900 bbls during the month. The Oilfield produces no gas. Net LGO production in barrels of oil equivalent totalled 450 boe.
Hungary
The Penészlek Gasfield (7.27% LGO) in eastern Hungary, through LGO's 7.27% ownership of PetroHungaria Kft produced net to LGO 1.672 mmscf of gas and no condensate during the month. The Gasfield produces no oil. Net LGO production in barrels of oil equivalent totalled 279 boe. As announced on 21 January, the Gasfield is currently shut-in due to the failure of a compressor at the downstream gas processing facility. 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 currently produce approximately 5000 boepd gross from the Eugene Island field. LGO's interest in the Eugene Island field approximates to an effective net working interest of 8% equating to a net LGO monthly production in barrels of oil equivalent totalling 12,000 boe.
David Lenigas, Executive Chairman, commented:
""January reported a major increase in the Company production schedule of 150% above December as a result of the inclusion of the Gulf of Mexico production and steadily increasing production from Spain. Trinidad delivered similar volumes to last month while Hungary was reduced with the third party processing facilities temporarily shutdown.
"The production schedule step change continues the very positive start to 2009 for LGO as the full benefit of our Gulf of Mexico interest is reported and with our Spain enhancement program delivering month on month significant production increases and record oil sales."
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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