5th Aug 2010 07:00
For Immediate Release
5 August 2010
LENI GAS & OIL PLC
("LGO" or the "Company")
SPAIN HONTOMIN WELL SPUD DATE
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas production, development and exploration company, today announces the drill rig is scheduled to be at Hontomin on or around the 16th August 2010 to spud Hontomin well and commence an extended well test on the Hontomin oil discovery in northern on-shore Spain.
The Hontomin prospect is 1350 metres to 1500 metres subsurface and is a proven Lower Jurassic Lias Calcarenite hydrocarbon formation discovered by Chevron in the 1960s which initially tested at an initial rate of 700 bopd. The structure is formed in a highly faulted thrusted anticline and covers a maximum area of 2.9 sq.km with probabilistic OIIP of 2.40 mmbo Mean, 5.71 mmbo P10, 1.34 mmbo P50 and 0.29 mmbo P90.
The objective of the Hontomin programme is to appraise the long term production potential of the Hontomin-2 well. The programme is expected to take 4 weeks to drill-out and re-complete prior to monitoring production performance over the coming months. The perforation of the existing hydrocarbon intervals and other potential undepleted zones is currently planned for start Q4 2010.
The information from the well shall also be used to further appraise the larger Lower Jurassic conventional oil prospect below the Ayoluengo producing oilfield as previously announced on 11 May 2010.
All well test production from Hontomin will be transported 38km to the production facilities at the Ayoluengo oilfield for processing and oil sales.
David Lenigas, Executive Chairman, commented:
"The Company is excited about the potential of Hontomin to bring onstream a second production asset in Spain."
"The historical performance of the well and the ongoing joint development work with CIUDEN presents a tremendous platform to maximise the commerciality of the Hontomin structure and potentially provide boost to Spain's daily production and revenues."
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Executive Director for Leni Gas & Oil Plc (member of the SPE) who has over 20 years relevant experience in the oil industry.
Enquiries:
Leni Gas & Oil plc
David Lenigas, Executive Chairman
Fraser Pritchard, Executive Director
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. LGO's strategy is to acquire projects and businesses within the oil and gas sector that contain a development premium which can be unlocked through a combination of financial, commercial, and technical expertise.
LGO operates a low risk portfolio of production expansion assets in the US Gulf of Mexico, Spain, Trinidad and Malta with significant play upside using similar strategies to leverage technologies and proven production enhancement techniques. LGO specifically targets near term production with upside exploitation potential and manages its portfolio to ensure all assets have accelerated incremental reserves and production enhancement programs.
GLOSSARY
bo = barrels of oil
bopd = barrels of oil per day
CIUDEN = Fundación Ciudad de la Energia
mm = million
OIIP = oil initially in place
sq.km = square kilometres
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