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Market: AIM
Sector: Energy
EPIC: LGO
Latest Price: 0.84p  (-3.45% Descending)
52-week High: 3.14p
52-week Low: 0.46p
Market Cap: 10.58M
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Leni Gas & Oil
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.

Full Leni Gas & Oil profile here
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Leni Gas gives backing to more drilling at Eugene Island

1st Dec 2011, 8:06 am by Philip Whiterow Leni Gas gives backing to more drilling at Eugene Island

 

Leni Gas & Oil (LON:LGO) today confirmed additional drilling is set to get underway at the Eugene Island field in the US Gulf of Mexico.

The company holds a 7.25% working interest in 184 leases operated by Marlin Energy at the prospect.  

A programme of two sidetracks targeting reserves in the Tex-X2 and Tex-X3 reservoirs has been proposed by Marlin, commencing with a sidetrack of the A#2 well to the Cranberry Creek prospect. 

This will be followed by a sidetrack to a separate proven undeveloped attic oil reserve in the Tex-X3 reservoir. 

Leni Gas said work will start almost immediately with preparatory operations in the A#2 well to abandon the existing well below 7,600 feet ahead of the arrival of a drilling rig, Ocean Columbia. The rig is scheduled to be on site by early January 2012. 

The A#2 sidetrack is targeted to reach a downthrown fault block with an estimated mean recoverable reserve of 0.5 million barrels of oil within the Tex-X2 target level at a depth of approximately 13,000 feet subsea. 

The slightly deeper Tex-X3 reservoir will also be tested by the well.  Both reservoirs are productive in other wells throughout the field. 

The net cost to Leni Gas of drilling, logging and evaluating the A#2 sidetrack is an initial US$280,000. 

Neil Ritson, Leni Gas chief executive, said: “We are delighted to participate in these opportunities which were deferred from 2010.”

Any incremental production is expected to be realised quickly with a short payback period on the investment, he added.

 

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