14th Dec 2007 13:56
Leni Gas & Oil PLC14 December 2007 For Immediate Release 14 December 2007 Leni Gas & Oil Plc ("Leni Gas" or the "Company") Acquires Option for Second Producing Asset in Trinidad The Board of Leni Gas & Oil is pleased to announce that the Company has enteredinto an Option Agreement to purchase a 50% interest in the 1,900 acre IcacosOilfield located on the Cedros Peninsula of Southern Trinidad which lies withinthe East Venezuelan Basin. This field adheres to the Company's investment strategy in having currentproduction, potential for improved production from the existing wells andlow-cost exploration potential. The field will be jointly owned and operated by Primera Oil, a participant inthe Trinidad petroleum industry. The field has produced oil since its discoveryby Premier in 1965, mostly 28API gravity crude, from Miocene age sands of theUpper Cruse Formation at depths of typically between 2000 and 3,000 ft. Current daily production is 31 barrels per day from only 3 of 14 wells. It isthe intention to raise this level utilising regular well maintenance andmodernisation techniques. Previously producing wells are planned to bereconditioned and others reopened to take advantage of renewed demand andpricing of oil. Leni Gas will pay a deposit of US$50,000 immediately to secure the deal and afurther US$450,000 to gain the benefit of the oil production income by January12, 2008. Upon the vendor obtaining all necessary permissions and assignments,the Company will issue LGO shares to the value of US$500,000 at the share priceon the day Leni Gas & Oil Plc began to receive its 50% share of the income fromoil production at the Icacos Field. David Lenigas, Executive Chairman, commented: "The option to acquire a half share in a producing oilfield in Trinidad givesthe Company a foothold in one of the richest oil and gas bearing areas of theworld. The completion of this acquisition will add both to the Company's productiontally and open up opportunities for carefully planned exploration plays. The potential of the Icacos Field fits with the Company's stated strategy ofproduction plus affordable exploration potential." For further information, please contact:Leni Gas & Oil PLCDavid Lenigas, Executive Chairman Tel +44 (0) 20 7016 5100Beaumont Cornish LimitedRoland Cornish Tel +44 (0) 20 7628 3396 Pelham PRCharles Vivian Tel + 44 (0)20 7743 667Evgeniy Chuikov Tel +44 (0)20 3008 5506 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CERP.L