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20 Apr 2009 07:00
LENI GAS & OIL Plc
("LGO" or "The Company")
20 April, 2009
Hungary - Production Development Success
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company today announces PetroHungaria kft (LGO 7.27%), has successfully completed and tested the Pen-104a sidetrack of the Pen-104 gas production well in the Penészlek Development Area of eastern Hungary
As announced on 30 March 2009, the Pen-104a sidetrack is targeting reserves in the higher part of the structure to maximise recovery of the mean contingent resources of 1.1 bcf. The sidetrack well drilled the target reservoir sands as planned and during a short clean-up flow the well produced gas at an estimated rate of 70,000 Sm3 per day (approximately 2.5 mmscfd). Once the drilling rig has been demobilised, the flow line will be immediately connected to the existing production and transportation infrastructure and placed onto gas sales production in the coming days
Further to the 21 January 2009 announcement on the development scheduling of the other identified Penészlek resource locations, the joint venture now plan on drilling the Pen-12 appraisal (Pen-105) well next in the schedule and shall announce in due course the development plan for all remaining Penészlek Development resources.
David Lenigas, Executive Chairman, commented:
"LGO are very pleased with the initial results of the Penészlek development expansion. The operations team completed this complex highly deviated well very efficiently and according to the plan."
"We look forward to reporting the stabilised production from the well shortly in addition to a resources revision for the development area."
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 industry.
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 / 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. 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.
GLOSSARY
Sm3 standard cubic metres of gas
mmscfd million standard cubic feet of gas per day
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