Leni Gas and Oil plc has received a number of strong expressions of interest from international oil companies (IOC) to either participate in the development of the Company's Spanish oil assets, or to purchase the assets outright.
The Company announced in October 2011 of its intention to seek a partner to assist in the further development of the Ayoluengo oilfield, including a possible Enhanced Oil Recovery project. The time for submissions closed on March 21, 2012. The Company has now formally closed its data room.
The Board has decided that divestment could potentially represent the best opportunity for the Company in light of the new development opportunities previously announced in Trinidad.
A number of conditional cash bids to buy the assets have been received at a very significant premium to the original €2.6 million paid for these assets.
The Company will now be working with the bidders to close a transaction with the intention of selling its Spanish assets.
Neil Ritson, Chief Executive commented: "We have been delighted with the interest shown in our Spanish properties and believe that if this results in a divestment, the funds raised can be utilized in Trinidad and the Gulf of Mexico where the Company has many opportunities to invest in work programs with greater potential for near-term production. The Farm-in Agreement with Advance Oil Company Limited announced in 2011 is now anticipated to be completed in April 2012 and plans to drill the first of the three wells committed under that agreement are being formulated for mid-year 2012, although final timing depends on contracting a suitable drilling rig."
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