21 May 2012 07:00
Immediate Release
21 May 2012
Leni Gas & Oil PLC
("LGO" or the "Company")
Operational Update, Goudron Field Trinidad
LGO today announces the mobilization of a workover rig to commence field operations on the re-development of the onshore Goudron Field in south-eastern Trinidad through its wholly owned subsidiary Goudron E&P Limited ("GEPL").
As previously announced in October 2011 the Company plans to re-develop the Goudron oilfield in partnership with Trinidad and Tobago State-owned Petrotrin under the terms of an existing Incremental Production Service Contract ("IPSC"). Re-development will start with the working over of up to 50 existing wells and will be followed by the drilling of additional wells, the application of new technologies and ultimately through a water flood program. Petrotrin have now granted conditional approval to the assignment of the IPSC and LGO plans to commence field operations imminently.
The Goudron Field lies between the East Moruga and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline to the Pointe-a-Pierre refinery in western Trinidad. The oil reservoirs generally lie between 300 and 3,500 feet below surface and the oil is low sulphur and has API gravities ranging between 25 and 55 degrees. GOR is variable but generally higher in the deeper Gros Morne (Cruse equivalent) reservoir zones and lower in the overlying Goudron Sandstones.
Proven reserves, recoverable using existing wells and a small number of infill wells were estimated, by Sorgenia International BV, at 1.9 mmbbls, whilst proven plus probable reserves were estimated at 8.0 mmbbls. Additional possible recoverable reserves have been attributed to hydraulically fractured wells and contingent resources are also attributed to a future potential water flood scheme. The Company has recently engaged Challenge Energy Limited as an Advisor to prepare a Competent Persons Report on the Goudron Field and LGO expects to publish that report in the third quarter 2012.
LGO has assessed the opportunity for an initial work-over program aimed at improving the production from existing wells and estimates that production can be raised to 400-500 bopd. In order to initiate work on these objectives LGO has agreed to act as a sub-contractor to the current operator, Cameron Oil and Gas Limited, and will commence field operations imminently. A workover rig from Altech Services Limited is being mobilized to the field now and is expected to commence operations within the next seven days.
Approval to the assignment of the IPSC to GEPL by the Trinidad and Tobago Ministry of Energy and Energy Affairs has now been sought.
Neil Ritson, LGO's Chief Executive, commented:
"We are delighted to be able to start work in partnership with Cameron ahead of receiving the formal transfer of the contract. We are confident that with an increased level of investment and the application of new technologies we will be able to raise production substantially, which will contribute directly to the Ministry of Energy's immediate objectives of increasing oil production in Trinidad."
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
API - American Petroleum Institute
bopd - barrels oil per day
Contingent Resources - petroleum which are estimated to be potentially recoverable from known accumulations, but are not currently considered commercially recoverable
GOR - gas oil ratio
mmbbls - million barrels of oil
Reserves - reserves have been stated using the standards set out by the Society of
Petroleum Engineers Resource Management System