CERP.L Regulatory News (CERP)

15 Sep 2009 08:47



LENI GAS & OIL Plc

("LGO" or "The Company")

15, September 2009

Hungary - Penészlek Development Update

Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company today announces that PetroHungaria kft (LGO 7.27%) has completed the testing of the Pen-105 gas well in the Penészlek Development Area of Eastern Hungary. The gas rates achieved and the reserves associated with Pen-105 were substantially higher than pre-drill estimates

The Pen-105 well which was an appraisal of the Pen-12 discovery was drilled to a total depth of 1,487m and has now been completed in the tuffaceous Miocene reservoirs as a production well. Three intervals were tested in the target formation, such that 9 metres of reservoir were perforated. All three zones flowed gas (two with condensate), with no formation water. The productive reservoir found is substantially thicker than at the Pen-12 discovery well and mean resources have increased from the pre-drill estimate of 1.46 bcf. The mean recoverable reserves shall be announced in due course within an updated resources restatement.

The pipeline has been planned with an application for a construction permit submitted and approval is expected by the end of November. Production from the well is due to commence in early 2010. The Pen-105 well is located approximately 6 kilometres west south west of the current Pen-104 gas production well.

David Lenigas, Executive Chairman, commented:

"LGO are very pleased with the successful appraisal of Pen-105 and the higher than expected reserve and flow rates. This is another significant step forward for the expansion of LGO's gas development in east Hungary and we look forward to production commencing early next year."

Competent Person's Statement: 

The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Executive Director for Leni Gas & Oil Plc (member of the SPE) who has 20 years relevant experience in the oil industry.

Enquiries: 

Leni Gas & Oil plc 

David Lenigas, Executive Chairman 

Fraser Pritchard, Executive Director

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 / Henry Lerwill

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. LGO's strategy is to acquire projects and businesses within the oil and gas sector that contain a development premium which can be unlocked through a combination of financial, commercial, and technical expertise.

LGO operates a low risk portfolio of production expansion assets in the US Gulf of Mexico, Spain, Trinidad, Hungary and Malta with significant play upside using similar strategies to leverage technologies and proven production enhancement techniques. LGO specifically targets near term production with upside exploitation potential and manages its portfolio to ensure all assets have accelerated incremental reserves and production enhancement programs.