1 Oct 2012 07:00
Immediate Release, 7 am
1 October 2012
Leni Gas & Oil PLC
("LGO" or the "Company")
Goudron Drilling Update, Trinidad
LGO today announces the start of further production enhancement work at the Goudron Field in south-eastern Trinidad. A rig was mobilized to the field over the weekend and has commenced work which is designed to clean and service five of the existing wells.
Neil Ritson, LGO's Chief Executive, commented: "Goudron is the centerpiece in our strategy to focus the Company's activities on production growth in Trinidad. Ownership of the field contract should pass to LGO this month and we are delighted to be getting the field redevelopment underway; especially as the recent reserves report shows there is enormous potential."
All five wells; GY-184, GY-200, GY-241, GY-243 and GY-273, have existing down-hole pumps and electrically driven surface beam engines. These pumps will be serviced as necessary during the program which is likely to take about 25 days to complete, at an overall cost of US$50,000.
Each well is anticipated to deliver average incremental production of 10 barrels of oil per day ("bopd"). This program is been designed to raise production to a stable rate of over 100 bopd and is the next phase in revitalizing the existing 92 wells currently available on the field.
The recently published independent Competent Persons Report by Challenge Energy Limited ("Challenge") has confirmed Proven and Probable Reserves of 7.2 million barrels ("mmbbls") for the Goudron Field based on the working over of the existing wells and the drilling of new infill wells which are computed by Challenge to have an average initial rate of 50 bopd. Longer-term upside identified by Challenge in Possible Reserves and Contingent Resources of over 60 mmbbls represents considerable upside in the field.
As previously announced LGO is operating through its wholly owned subsidiary Goudron E&P Limited as a sub-contractor to Cameron Oil and Gas Limited pending final transfer of the Incremental Production Service Contract to the Company, which is now anticipated to occur later this month. Once field operatorship is transferred, LGO plans a continuous program of well workovers.
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc who has over 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.
Enquiries:
Leni Gas & Oil plc
David Lenigas Neil Ritson | +44 (0)20 7440 0645
|
Beaumont Cornish Limited
Nomad and Joint Broker Rosalind Hill Abrahams Roland Cornish | +44(0) 20 7628 3396 |
Old Park Lane Capital Plc
Joint Broker Michael Parnes Luca Tenuta | +44(0) 20 7493 8188 |
Shore Capital
Joint Broker
Pascal Keane +44 (0) 20 7408 4090
Jerry Keen (Corporate Broking)
Pelham Bell Pottinger
Financial PR Mark Antelme | +44 (0) 20 7861 3232 |
Henry Lerwill |
Glossary:
Contingent Resources
| those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality |
Possible Reserves
| those additional reserves which analysis of geoscience and engineering data suggest are less likely to be recoverable than Probable Reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P) Reserves, which is equivalent to the high estimate scenario |
Probable Reserves
| those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves |
Proven Reserves | those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations |