Leni Reaches TD at GOM Sidetrack

Leni Gas & Oil plc announced that the A2ST01 sidetrack at the Eugene Island Field in the US Gulf of Mexico has reached a total depth of 13,496 feet.

The A2ST01 sidetrack was designed to test the Cranberry Creek prospect at the Tex-X2 reservoir level at a depth of approximately 13,000 feet subsea. The Tex-X2 reservoir was encountered slightly high to prognosis and was found to be water wet. Logging while drilling results show a 5 foot thick hydrocarbon pay zone at a different level within the well, however, this is not considered by the operator to be sufficient to justify installation of a production completion. This sidetrack from the A2 well is being plugged.

With the new data obtained, which will require study and integration with the existing well and seismic data, and the need to release the rig due to its sale by Diamond Offshore to Hercules the operator Marlin Energy LLC ("Marlin") was not able to drill and complete the second well and has therefore released the rig back to the owners. When a suitable rig is located the operator will commence drilling of the planned 2nd well.

The A2ST01 sidetrack was drilled from the non-producing A2 well of the Eugene Island-184 platform while production from the A1, A3, A4, A5 and A8 wells continued as normal.

The Eugene Island-184 leases are operated by Marlin, and LGO holds a 7.25 percent working interest.

Neil Ritson, LGO Chief Executive, commented: "Although oil was encountered in this sidetrack, the economics of installing a completion appeared marginal. This well has shown that additional opportunities remain in the Eugene Island Field and we look forward to the operators proposals in due course. Profitable production of the existing oil and gas reserves continues."


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