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10 Mar 2009 13:43
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LENI GAS & OIL PLC
10Β March, 2009
CO2Β SEQUESTRATIONΒ DEVELOPMENT AGREEMENT WITHΒ SPANISH FOUNDATION
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company, today announces that it has signedΒ a joint development agreementΒ with the FundaciΓ³n Ciudad de la Energia (CIUDEN)Β for the research, testingΒ and implementation ofΒ carbon dioxide (CO2)Β sequestration pilot sites in Spain.
CIUDEN is a Spanish foundation incorporated by the Ministry of Industry, Trade and Tourism, the Ministry of the Environment and the Ministry of Science and Innovation within the Spanish Government. One ofΒ CIUDEN'sΒ most important technical objectives is research and developmentΒ (R&D)Β related to carbon capture and storage (CCS).Β Β As part of the R&D effortΒ two pilot plants have been planned, one forΒ carbonΒ captureΒ for whichΒ constructionΒ has commencedΒ and another where R&D activitiesΒ to investigateΒ the "life cycle" of underground storage of CO2Β will be performed.
As part of a European Union Initiative to develop twelve CCS industrial demonstrationΒ plants, the Spanish Government has started its own relevant activities. In this process, the technological development undertaken by CIUDEN will provide technical and economicalΒ evaluation to the Spanish alternatives.
As announced on 10 November 2008, LGO previously signed an agreement withΒ CIUDENΒ to shareΒ geological dataΒ forΒ identifyingΒ potential pilot sites for R&D activities on CO2Β sequestration in Spain.Β Subsequent toΒ this data review, LGO and CIUDEN have agreed to enter into a second phase of cooperation with completion of a joint development agreement.
Under terms of theΒ joint developmentΒ agreement,Β CIUDENΒ with the support of LGOΒ shall identify and carry out work programs to research, test and implement activitiesΒ to evaluateΒ CO2Β sequestration on two assets within LGO's Spain acreage. All work programs areΒ wholly funded by CIUDENΒ and willΒ be performed on the Hontomin and western flank of Ayoluengo to assess CO2Β injection, storage andΒ enhanced oil recovery.
David Lenigas, Executive Chairman, commented:Β
"This newΒ agreement with CIUDEN isΒ a further positive stepΒ in supporting theΒ European Union's andΒ Spanish Government's Carbon Capture and StorageΒ initiativeΒ as well asΒ expanding the Company'sΒ enhanced oil recovery opportunitiesΒ within ourΒ SpainΒ acreage."
"The joint developmentΒ programs onΒ Hontomin and west AyoluengoΒ haveΒ considerableΒ potential for assessing the value of gas storage and enhanced oil recovery on both assets and we look forward to actively workingΒ with CIUDEN over coming months toΒ progress the various development programs."
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Competent Person's Statement:Β
The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard,Β Executive Director (Operations)Β for Leni Gas & Oil Plc (member of the SPE) who has 20 years relevant experience in the oil.
Enquiries:Β
Leni Gas & Oil plcΒ
David Lenigas, Executive ChairmanΒ
Tel +44 (0) 20 7016 5103Β
Beaumont Cornish LimitedΒ
Roland CornishΒ /Β Rosalind Hill AbrahamsΒ
Tel +44 (0) 20 7628 3396Β
Mirabaud Securities Limited
Rory Scott
Tel +44 (0) 20Β 7878 3360
Pelham PRΒ
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 companyΒ headquartered in London, trading on the London Stock Exchange's AIM index. The Company has assets in the US Gulf of MexicoΒ and Lower 48, Spain, Trinidad, Hungary and Malta. LGO's strategy is delivering growth through the acquisition of proven reserves and the enhancement of producing assets in low risk countries.
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