Leni provides corporate activity & production update
Leni Gas & Oil plc (LGO), the AIM listed International Oil and Gas Exploration, Development and Production Company, gives its corporate update for the six week
Leni Gas & Oil plc (LGO), the AIM listed International Oil and Gas Exploration, Development and Production Company, gives its corporate update for the six week period commencing October 1, 2009 and production update for October:
Corporate Overview During October the Company's direct and indirect monthly production totalled 11,342 boe (average 371 boepd). The Spain production schedule was impacted by oil production restrictions due to upgrade and testing works to handle the high gas production in advance of running re-completions to maximize oil and gas production from the multiple reservoirs. These works shall maximize current oil production and optimize the wells in advance of the next capital programs. GOM work programs to increase Eugene Island production are continuing with third party mainline works completed. The production schedule has returned to near capacity and shall be reported at end 2009 as per the joint venture operator quarterly reports. The next stage of GOM capital programs is expected to be announced shortly. Trinidad production expansion plans are currently being finalised in anticipation of new license commitments commencing shortly.
David Lenigas, Executive Chairman, commented, "In Spain we have embarked upon a program of upgrading to re-commission the gas processing facilities and run re-completions to handle differential increased oil, gas and water production. Although high gas production is currently limiting oil production, these upgrades and re-completions will maximize production of each reservoir, and prepare the field for the next major increase in production from the perforation and drilling programs.
"In the Gulf of Mexico the gas export maintenance and well interventions have been completed, and the compression upgrades are continuing to return Eugene Island to production capacity. The production schedule has increased considerably since the last reporting period and we look forward to reporting this increase before end 2009 as well as the completion of the Byron equity conversion agreement.
"In Trinidad preparations are continuing to commence the new licence commitments and effect the Operator change in control, and in Hungary the Company has decided to exercise its option for participation in the Lovászi with MOL.
"Looking ahead, the Company forecasts the November production schedule to be similar to October with ongoing programs in Spain and the Gulf of Mexico. We also expect to report the program of activities for all countries for the next 6 months."