LGO announces further progress on its Cedros Peninsula interests in the south west of Trinidad where it has entered into a further agreement with Beach Oilfield Limited as part of the previously announced arrangements to acquire all of BOLT's interests in oil and gas leases with rights to deep targets below 7,000 feet. Separately, LGO's title to its 100% owned Cedros leases have now been accepted by the Ministry of Energy and Energy Affairs, who are in the process of issuing a Petroleum Rights License for those leases which cover an area of approximately 3,850 acres.
In November 2014 LGO agreed to pay a total of US$400,000 to BOLT in part payment of the US$2.5 million sum agreed in 2013 for the purchase of the rights below 7,000 feet in the leases owned or to be obtained by BOLT. LGO has now agreed to pay a further US$200,000 to BOLT in part payment of the remaining consideration of US$2.1 million. The final payment due at closing under the agreements is thereby reduced to US$1.9 million.
Neil Ritson, Chief Executive of LGO, commented,'We are now making excellent progress in bringing together the licensing and the technical work in the Cedros so that we can begin drilling in 2016 and beyond. Early indications from our geochemistry and airborne gravity surveys completed recently are that we may well have multiple prospects from which to choose the first well target.'