CERP.L Regulatory News (CERP)

For Immediate Release, 7 am 11 February 2014

LENI GAS AND OIL PLC

("LGO" or the "Company")

Rig Contract, Goudron Field, Trinidad

LGO today confirms that the Company has now signed a contract with Well Services Petroleum Company Limited ("Well Services"), Trinidad's largest drilling contractor, for the drilling of the first seven wells of the planned 30 well development drilling programme at the Goudron Field. 

The contract envisages the use of Well Services' Rig 20 which is anticipated to be mobilised to the field as soon as practical. Drilling site preparation, along with required road improvements, are already underway.

As outlined in the Company's press release of 22 January, the first well, H-18E J-7, lies within an area of the field where unrecovered oil is expected to be present in the Gros Morne and Lower Cruse sandstones. The Lower Cruse at a depth of 2,800 feet sub-sea is the primary target of the well, which will then be deepened to ensure all potential productive horizons are intersected. The second well has similar objectives. Further wells in the initial seven well programme will be designed to utilise the drilling capability of Rig 20.

Additional services for the upcoming wells, including mud, cementing and logging will be contracted locally in Trinidad, where all consumables are also immediately available. It is planned to drill in 12 1/4" hole to around 1,600 feet followed by the setting a 9 5/8" casing before drilling to total depth in 8 1/2" hole into which a 7" casing will be set. Total drilling evaluation is planned to take 11 to 12 days. The rig will then be moved to the next location whilst a completion programme is designed and approved. Well completion will then be accomplished without further use of the rig.

These initial drilling results will be used to develop a new Competent Persons Report later in 2014 which is expected to see the transfer of oil from probable to proven reserves categories. 

Neil Ritson, LGO Chief Executive, commented:

"We continue to progress rapidly towards the imminent spud of the new wells which are expected to substantially raise production and tap the reserves that have been booked to the field. This is a busy and exciting time for 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.

Enquiries:

Leni Gas & Oil plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Bell Pottinger