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27 May 2014 08:30
For Immediate Release, Embargoed until 8.30 am 27 May 2014
LENI GAS AND OIL PLC
("LGO" or the "Company")
Reserves Clarification, Trinidad
Following inquiries from shareholders, the Company is today pleased to clarify its reserves, contingent resources and oil-in-place data in respect of the Goudron Field in Trinidad.
The Company's announcement dated 24 March 2014 in respect of the Goudron Field, referred to a "30 well re-development programme designed to access the existing 7 million barrels of proven and probable reserves and to provide data to assist in the design of a secondary recovery scheme (water flood) to access some of the estimated 60 million barrels of contingent resources attributed to the field."
In a further announcement dated 1 May 2014, the Company stated that "independently verified proven and probable ("2P") original oil-in-place of 126 million barrels ("mmbbls") of which only approximately 4 mmbbls have been recovered to date. In place 2P oil resources assigned by Challenge Energy in their 2012 independent report totalled 72 mmbbls in the Goudron Sands and a further 54 mmbbls in the Lower Cruse."
Oil-in-place is the volume of oil that is calculated to be in the reservoir and to be accessible for recovery through production. Original oil-in-place, as the term implies, additionally clarifies that those volumes estimated to be in-place are before any production commenced. Reserves are the volumes of oil that are estimated to be recoverable from a given volume of oil-in-place. The term resources used in the 1 May announcement is generic and refers to oil-in-place that could give rise to either reserves or contingent resources as defined in the Glossary below.
The information in both announcements referenced above was extracted without material amendment from the announcement released on 22 January 2014 which included the following reserves and resources tables. All data in these tables was independently verified by Challenge Energy Limited.
Reserves Data:
mmbbls at 1/07/2012 | 1P | 2P | 3P |
Total Reserves | 0.7 | 7.2 | 30.4 |
Contingent Resources Data:
mmbbls at 1/07/2012 | 1C | 2C | 3C |
Total Goudron Sand | 1.9 | 7.0 | 18.5 |
Total Cruse Sand | 4.3 | 8.9 | 44.7 |
Total Contingent Resources | 6.2 | 15.9 | 63.2 |
Oil-in-place Data:
mmbbls at 1/07/2012 | 1P | 2P | 3P |
Total Goudron Sand | 30.4 | 71.7 | 136.8 |
Total Cruse Sand | 34.8 | 54.0 | 313.3 |
Total Oil-in-place (STOOIP) | 65.2 | 126.7 | 350.1 |
As LGO holds a 100% interest in the Goudron Field all estimates are therefore both gross and net to the Company.
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 (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London.
Glossary
Contingent Resources (1C, 2C, 3C)
| 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 |
oil-in-place | the volume of oil estimated to have been initially in place |
mmbbls | millions of barrels |
STOOIP | stock tank oil originally in-place |
Possible Reserves (3P)
| 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 (2P)
| 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 (2P) |
Proven Reserves (1P) | 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 |
The estimates provide in this statement are based on the Petroleum Resources Management System ("PRMS") published by the Society of Petroleum Engineers ("SPE") and are reported consistent with the SPE's 2011 guidelines. All definitions used in this announcement have the meaning given to them in the PRMS.
Enquiries:
Leni Gas & Oil plc
David Lenigas Neil Ritson | +44 (0) 20 7440 0645 |
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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 | +44(0) 20 7493 8188 |
Bell Pottinger
Financial PR Mark Antelme | +44 (0) 20 7861 3232 |
Henry Lerwill |
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