Sign In
10 Mar 2009 13:43
LENI GAS & OIL PLC
10 March, 2009
CO2 SEQUESTRATION DEVELOPMENT AGREEMENT WITH SPANISH FOUNDATION
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company, today announces that it has signed a joint development agreement with the Fundación Ciudad de la Energia (CIUDEN) for the research, testing and implementation of carbon dioxide (CO2) 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 of CIUDEN's most important technical objectives is research and development (R&D) related to carbon capture and storage (CCS). As part of the R&D effort two pilot plants have been planned, one for carbon capture for which construction has commenced and another where R&D activities to investigate the "life cycle" of underground storage of CO2 will be performed.
As part of a European Union Initiative to develop twelve CCS industrial demonstration plants, the Spanish Government has started its own relevant activities. In this process, the technological development undertaken by CIUDEN will provide technical and economical evaluation to the Spanish alternatives.
As announced on 10 November 2008, LGO previously signed an agreement with CIUDEN to share geological data for identifying potential pilot sites for R&D activities on CO2 sequestration in Spain. Subsequent to 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 the joint development agreement, CIUDEN with the support of LGO shall identify and carry out work programs to research, test and implement activities to evaluate CO2 sequestration on two assets within LGO's Spain acreage. All work programs are wholly funded by CIUDEN and will be performed on the Hontomin and western flank of Ayoluengo to assess CO2 injection, storage and enhanced oil recovery.
David Lenigas, Executive Chairman, commented:
"This new agreement with CIUDEN is a further positive step in supporting the European Union's and Spanish Government's Carbon Capture and Storage initiative as well as expanding the Company's enhanced oil recovery opportunities within our Spain acreage."
"The joint development programs on Hontomin and west Ayoluengo have considerable potential for assessing the value of gas storage and enhanced oil recovery on both assets and we look forward to actively working with CIUDEN over coming months to progress the various development programs."
Competent Person's Statement:
The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Executive Director (Operations) for Leni Gas & Oil Plc (member of the SPE) who has 20 years relevant experience in the oil.
Enquiries:
Leni Gas & Oil plc
David Lenigas, Executive Chairman
Tel +44 (0) 20 7016 5103
Beaumont Cornish Limited
Roland Cornish / Rosalind Hill Abrahams
Tel +44 (0) 20 7628 3396
Mirabaud Securities Limited
Rory Scott
Tel +44 (0) 20 7878 3360
Pelham PR
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 company headquartered in London, trading on the London Stock Exchange's AIM index. The Company has assets in the US Gulf of Mexico 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.
Follow the stocks
