www.lenigasandoil.com
Leni Gas and Oil plc is an international oil and gas exploration, development and production company headquartered in London, trading on the FTSE AIM All-Share. The Company has assets in the US Gulf of Mexico, Spain, Trinidad, and Malta. LGO’s strategy is to deliver growth through the acquisition of proven reserves and the enhancement of producing assets in low risk countries.
Leni Gas & Oil reports 10,215 boe production in December, expects increase in January
Leni Gas & Oil (AIM: LGO) updated the market on its operations today, saying that its direct and indirect production for the month of December totalled 10,215 boe (barrels of oil equivalent), peaking at the level of 393 boepd (barrels of oil equivalent per day) and expecting higher levels of production in January.
The full production capacity was restricted by 60% in Spain and the Gulf of Mexico due to planned development works, while planned interventions and shut-in production restricted production by 20% in Trinidad and Tobago and Hungary.
In Spain, the production schedule is still restricted due to the 2009 rehabilitation well programme flowing high pressure gas and increasing water production in some producer wells with LGO aiming to maximize production ahead of the next capital programmes by resolving both problems. LGO’s wholly owned Ayoluengo Oilfield in northern Spain produced net to LGO 4,788 bbls of oil and 1.158 mmscf of gas during December.
The company has also completed the agreement to convert its investment in Byron Energy to direct working interests and options in the Gulf of Mexico and Gulf Coast. LGO's indirect interest in the Eugene Island field through Byron Energy approximates to an effective net LGO monthly production of 4,663 boe.
“In Spain our works to upgrade the facilities and well completions continue to prepare for the 2010 production enhancement program...we are looking forward to completion of the new reserves and resources assessment which shall also include an estimate of deeper prospectivity across the acreage. In the Gulf of Mexico we are very pleased with the completion of the conversion agreement to retain a direct working interest in the portfolio and are looking forward to reporting the direct performance of Eugene Island and progress of the other developments at start 2010,” said executive chairman David Lenigas.
LGO is nearing completion of the commercial agreements in Trinidad to increase its activity level in the country and commence production expansion works, while planning to report on progress in Hungary next month with re-commencing of testing operations. The company’s net production in that country amounted to 481 boe.
Leni Gas & Oil PLC (AIM: LGO) reported a 10% increase in month-on-month production in November, when it produced 12,001 barrels of oil equivalent (boe) through its direct and indirect interests. The increased production was largely buoyed by a 20% production increase in Trinidad as a result of workovers.
