Leni Oil & gas (moderated were possible) (LGO)

Website http://www.lenigasandoil.com/
Factsheet http://www.lenigasandoil.com/factsheet/
Investors http://www.lenigasandoil.com/investors/
Operations http://www.lenigasandoil.com/operations/
Contact http://www.lenigasandoil.com/contact-us/
Interview with Niel Ritson on 10/07/12 http://www.proactiveinvestors.co.uk/companies/stocktube/1232/leni-gas-oil-ceo-talks-about-the-overlooked-asset-in-trinidad-1232.html

LATEST WRITE UP ON PROACTIVE 28/06/12


Leni Gas & Oil says initial results of workover programme in Trinidad meet expectations
Thursday, June 28, 2012 by Sergei Balashov


Leni Gas & Oil (LON:LGO) said the results of its initial workover programme at the Goudron field in Trinidad have fully matched its expectations.

The combined initial production rate from wells GY-190, GY-245 and GY-254, which have now successfully been worked over, has been above 30 barrels of oil per day (bopd) with well GY-245 alone producing 17 bopd.

Production is expected to increase further when the company optimises the pump configurations.

The fourth well, GY-63, is currently pumping after being cleaned out and production in the last 24 hours totalled over 40 barrels of oil with LGO expecting a stabilised production rate within the next few days.

The final planned well, GY-246, has been entered and bailing of sand to clean the oil producing zone has now started.

These five wells are part of the larger well intervention programme covering around 50 wells over the first 12 months of operations.

The total cost of the programme has been estimated at US$40,000.

LGO also reported that the assignment of the Goudron incremental production service contract (IPSC) to the company has been approved by Trinidad’s state owned oil group Petrotrin and the formal documentation is being processed.

“After under a month we have been able to raise the production level substantially,” said chief executive of LGO Neil Ritson.

“Once formal assignment is complete we will embark on the wider program and start planning to drill new state-of-the-art wells.”

Broker Old Park Lane Capital welcomed the update, saying that at an average workover cost of US$8,000 per well, this is an “excellent return”.

Analyst Barney Gray added that once the company receives formal assignment of the IPSC, the longer term programme of workover and new wells will accelerate.

LAST BROKERS NOTE 09/03/12

LENI GAS & OIL 1.64p
Approaching target depth on Eugene Island 9 March 2012
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LGO has announced that the A2 sidetrack well (A2ST01) on the Eugene Island-184 field (EI-184) in the Gulf of
Mexico has reached a depth of 12,566 feet and is now only 500 feet above the main objective. The well is
targeting the Tex-X2 horizon which is estimated to contain recoverable reserves of 0.5 mmbbls of oil.
• On 17 February, LGO commenced its participation in a multi-well sidetrack drilling programme on the Eugene
Island 184 field (LGO: 7.25% working interest) in the shallow water Gulf of Mexico (GOM). The operator,
Marlin Energy LLP, plans to drill two sidetracks and re-complete a third well over the next three months.
• Marlin is currently sidetracking the recently abandoned A2 well which had previously watered out. Marlin
successfully milled a window in the well casing between 7,594 and 7,607 feet and the well bore kicked out in
order to probe the adjacent fault block.
• The EI-184 field is complex and comprises faulted salt dome geology. As such, new sidetracks will target a
series of separate structures, the probing of which can be classified as appraisal drilling and therefore carries
a modest degree of risk.
• The target fault block for the A2 well is the Cranberry Creek prospect which has estimated recoverable
reserves of 0.5 mmbbls of oil. This reserve is located in the Tex-X2 formation located at a depth of
approximately 13,000 feet.
• Following A2ST01, Marlin intends to test the slightly deeper Tex-X3 reservoir with a second sidetrack of the
A2 well. Both the Tex-X2 and X3 reservoirs are productive in other wells throughout the field. To conclude the
programme, Marlin will also recomplete the A8 well which targets a shallower reservoir within the field.
• We anticipate that LGO’s share of the costs of this programme will be approximately US$1.2m However, we
believe that production from these wells will receive a boost from April/May and LGO will experience increased
cash flow in early H2.
LGO’s interest in Eugene Island is comparatively modest compared to the company’s assets in Trinidad and
Spain. However, with new wells capable of high initial production rates in excess of 300 bbls of oil and 1,500
mmcf of gas per day, Eugene Island could represent an attractive cash cow for LGO as it accelerates its joint
development activities with Range Resources in Trinidad.
Recommendation BUY
Sector: Oil & Gas
Exchange & Ticker: AIM: LGO
Shares in issue: 1,259.5m
Fully diluted equity: 1,440.4m
Market cap: £20.7m
Target price: 5p
ANALYST: Barney Gray
+44(0)20 7518 2607
bg@oldplc.com
CORPORATE BROKING: Luca Tenuta
+44(0)20 7518 2603
lt@oldplc.com
A marketing communication from Old Park Lane Capital, joint broker to Leni Gas & Oil plc
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LATEST RNS WILL BE HERE AND UPDATED AS THEY COME OUT


27th JUNE 2012

RNS Number : 2466G

Leni Gas & Oil PLC

27 June 2012

Immediate Release

27 June 2012

Leni Gas & Oil PLC

("LGO" or the "Company")

Production Update, Goudron Field

LGO today announces an update on production from the initial work over program at the Goudron Field in south-eastern Trinidad.

Wells GY-190, GY-245 and GY-254 have been successfully worked over and returned to pump production after clean out, removal of accumulated sand and minor repairs. Initial production results fully match expectations with the combined rate from these three wells in excess of 30 barrels of oil per day (bopd). Well GY-245 alone is currently producing at an average rate of 17 bopd. Optimization of the pump configurations is continuing and higher production rates are likely once the work is completed.

The fourth well, GY-63, is presently pumping after being cleaned out and production in the last 24 hours totaled over 40 barrels of oil. A stabilized production rate is expected in the next few days. The final planned well, GY-246, has been entered and bailing of sand to clean the oil producing zone has commenced.

These five wells have been selected to gain practical experience of the field conditions and are part of the larger well intervention program covering approximately 50 wells over the first 12 months of operations. The total cost of the five well program is estimated at US$40,000.

Assignment of the Goudron Incremental Production Service Contract (IPSC) to the LGO wholly owned subsidiary Goudron E&P Limited has been approved in principle by the Trinidad and Tobago State oil company, Petrotrin, and the formal documentation is being processed.

Neil Ritson, LGO's Chief Executive, commented:

"This work over program has gone entirely to plan and confirms our expectation that existing wells will be capable of producing at average rates of at least 10 bopd. After under a month we have been able to raise the production level substantially. Once formal assignment is complete we will embark on the wider program and start planning to drill new state-of-the-art wells."