CERP.L Regulatory News (CERP)

10 Nov 2008 07:00

LENI GAS & OIL PLC

10 November, 2008

C02 SEQUESTRATION INVESTIGATIVE VENTURE WITH SPANISH FOUNDATION

Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company, today announces that it has signed an agreement to start cooperation with the Fundación Ciudad de la Energia (CIUDEN) for the technical assessment of carbon dioxide (CO2) sequestration pilot sites in Spain.

CIUDEN is a Spanish foundation incorporated by the Ministry of Industry, Trade and Tourism, the Ministry of the Environment and the Ministry of Science and Innovation within the Spanish Government. One of CIUDEN's most important technical objectives is research and development (R&D) related to carbon capture and storage (CCS).  As part of the R&D effort two pilot plants have been planned, one for capture "Plataforma Experimental de EL Bierzo" of 20+15MWt, for which construction has commenced and another where R&D activities to investigate the "life cycle" of underground storage of CO2 will be performed.

As part of a European Union Initiative to develop twelve CCS industrial demonstration plants, the Spanish Government has started its own relevant activities. In this process, the technological development undertaken by CIUDEN will provide technical and economical evaluation to the Spanish alternatives. 

 Under terms of the agreement, LGO will provide CIUDEN with geological data to identify potential pilot sites for R&D activities on CO2 sequestration in Spain. Any sites identified with those objectives would be subject to separate agreement and where the benefits of enhanced oil recovery would be commercially viable.

David Lenigas, Executive Chairman, commented: 

"The agreement with CIUDEN is very exciting in both supporting the Spanish Government's Carbon Capture and Storage initiative as well as increasing our understanding of other enhanced oil recovery opportunities in Spain. We look forward to actively working with CIUDEN over the coming months to identify the pilot sites."

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 / 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.