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23 Oct 2008 07:00
LENI GAS & OIL PLC
22 October, 2008
MALTA 2009 WORK PROGRAM APPROVED
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company, today announces the formal commencement of the Production Sharing Contract ("PSC") with the Government of Malta on its Joint Venture with Mediterranean Oil & Gas Plc (LSE AIM : MOG).
LGO has a 10% interest in Area 4, Blocks 4, 5, 6 and 7 offshore Malta with MOG's wholly owned subsidiary, Malta Oil Pty, as PSC Contractor and Operator. The signing of the PSC was previously announced on 21 July 2008.
Under terms of the PSC, on 15 October 2008 the Advisory Committee for the PSC, constituting members of the Joint Venture and the Ministry of Resources & Rural Affairs for the Government of Malta, was inaugural convened and the work program for 2009 approved.
Four prospects and five leads on the 5,700 square Kilometre PSC Area have been delineated. The total most likely hydrocarbon potential of the PSC Area is estimated at 5 billion barrels of oil in place with resultant total most likely case prospective recoverable oil resources of 1,475 mmbo.
The objective of the 2009 Work Program is to increase the understanding of the prospect and leads and increase their relative chance of success for identifying the highest potential for drilling in 2010 and 2011. The Work Program will parallel several activities to assess the feasibility of and acquire electromagnetic and gravity data, execute depth re-processing on the acquired 3D seismic and acquire and interpret non-seismic data.
The 2009 Work Program has a gross budget cost of 2.5 mmUSD with LGO contributing 250 mUSD.
David Lenigas, Executive Chairman, commented:
"The previous technical assessment on the Malta acreage showed very encouraging results and several high value prospects and leads. The PSC and associated work programs will allow the joint venture to significantly improve its understanding of the highest potential prospects thus increasing the chance of success for the 2010 drilling campaign.
"We look forward to working closely with MOG to execute the 2009 work program and anticipate positive results from next year's activities."
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.
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