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 raises £1.51 mln through equity placing
Leni Gas & Oil (LON:LGO) has raised £1.51 million through an equity placing to develop the firm's work programmes.
The company said that 302 million shares were issued to investors at 0.5 pence per share - a 33 per cent discount to yesterday's closing price of 0.75 pence - to raise total funds of £1,510,000.
It comes seven days after the firm announced it had raised £176,000 - also through a placing - to maintain "momentum" behind its activities in Trinidad.
Chairman David Lenigas said this morning: "The company has successfully raised the funds needed to maintain the highest value elements of the company's growth agenda despite extremely difficult market conditions.
"We have imminent drilling opportunities in the Gulf of Mexico and in Trinidad, and a high value program in Malta and look forward to positive results from these activities."
It is proposed that the drilling of a sidetrack to the Eugene Island-184 A2 well in the Gulf of Mexico will begin in mid- December this year, said Leni.
If successful, the well will be completed in January next year and will boost production from the field. The company has a 7.25 per cent working interest in the Eugene Island property.
Offshore Malta, a 1000 sq km 3D seismic survey is currently being acquired in Area 4, in which Leni holds a 10 per cent working interest, to prepare for possible drilling next year on prospects already identified from existing data. The data will be available for interpretation late in Q1 next year.
This will support an ongoing farm-out effort by the company and the operator - Mediterranean Oil and Gas - before drilling of a well in late 2012.
Meanwhile, in Trinidad, at the Moruga North leases, two existing wells could be brought into production to produce 120 bopd (barrels of oil per day). A three well exploration programme has been agreed.
"In order to secure this opportunity for early 2012 drilling, financial commitments to a drilling rig and services are required to be made. LGO will earn a 49 per cent interest in the Moruga North leases and associated private petroleum licence.
Elsewhere, LGO recently acquired land leases on the Cedros peninsula in south west Trinidad, where it now holds a 50 per cent interest in the Icacos Field and 100 per cent interest in all other Cedros land leases.
LGO also said it planned to fund further investment in the Goudron reactivation project in Trinidad through mezzanine debt or reserves backed lending or a combination.
The company is paying up to US$9 million for control of the producing Goudron field in onshore south-eastern Trinidad and is looking at ramping up production to 2,000 bopd.
It is also anticipated that a data room will be opened for third party participation in the Ayoluengo EOR project in Spain during early December. Development of project with a partner will reduce the execution risk and reduce the costs to LGO of this project.
