14th Apr 2009 07:00
LENI GAS & OIL PLC
14, April 2009
MONTHLY PRODUCTION UPDATE - MARCH
SUSTAINED PRODUCTION CONTINUES WITH MAJOR DEVELOPMENT PROGRAMS
Leni Gas & Oil plc (LGO), the AIM listed international oil and gas exploration, development and production company, today gives its monthly production update for March 2009.
During March the Company's direct and indirect monthly production totalled 17,753 boe (average 573 boepd) which was slightly reduced from February (19,045 boe) due to scheduled development programs in Spain, Hungary and Trinidad with 30% of total Company production planned offline. 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 4,072 bbls and 1.038 mmscf of gas during the month. Net LGO production in barrels of oil equivalent totalled 4,245. Monthly production was lower than the previous month due to almost 60% of the production being offline due to the execution of the final stages of the first phase field stimulation program which shall continue to early May. The final stages of the field stimulation program are targeting efficiency improvements to the production facilities and rehabilitation of all wells to improve productivity, with initial results to date realising 40% increases in individual well production. The second phase of field stimulation is currently planned for the end of the second quarter 2009 which shall perforate 400 metres of undepleted production zones.
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 6,000 boepd gross from the Eugene Island field as announced by the joint venture operator on 25 February 2009. 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. As announced on 08 April 2009, LGO has completed a Heads of Agreement with Byron Energy to transfer the Company's shareholding in Byron Energy from an indirect to a direct ownership of its US Gulf of Mexico oil and gas assets. LGO's share of the producing Eugene Island Field at the February 2009 reported rates equates to direct production to LGO of approximately 435 boepd.
Hungary
The Penészlek Gasfield (7.27% LGO) in eastern Hungary, through LGO's 7.27% ownership of PetroHungaria Kft is currently shut-in pending completion of the Pen-104a sidetrack targeting a higher part of the structure to maximise recoverable reserves. Completion and testing of the Pen-104a sidetrack is expected by the second half of April and the well shall be immediately placed on gas sales production using the existing processing and transportation infrastructure. The production schedule of ZalaGasCo Kft (14.74%) LGO) in western Hungary will be announced in due course.
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 916 bbls during the month with 25% of production offline due to planned well interventions. The Oilfield produces no gas. Net LGO production in barrels of oil equivalent totalled 458.
David Lenigas, Executive Chairman, commented:
"March saw only a small reduction in the Company production schedule despite almost 30% of the total production planned offline due to scheduled development programs in three out of four countries of production operations."
"In Spain, the last two stages of the first phase stimulation program are targeting major production facilities efficiency and well productivity improvements. Combined, these will realise a significant production increase by early May of about 40%. The second phase stimulation program due for completion in summer 2009 is targeting to increase Spain production to over 1,000 bopd."
"In Hungary, sidetrack of the Pen-104 production well continues to plan with gas sales production expected by end April and in Trinidad well intervention shall return the production schedule to full capacity in April."
"The Company expects the April production schedule to be similar to March until all planned development programs are completed, with the May schedule targeting to report a significant increase in production near to 1,000 bopd. In the near term the Company expects to release the full production schedule for our Gulf of Mexico interests further to the announcement last week on the indirect to direct ownership conversion."
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 / Fraser Pritchard, Executive Director (Operations)
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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