This field adheres to the Company's investment strategy in having current production, potential for improved production from the existing wells and low-cost exploration potential.
The field will be jointly owned and operated by Primera Oil, a participant in the Trinidad petroleum industry. The field has produced oil since its discovery by Premier in 1965, mostly 28API gravity crude, from Miocene age sands of the Upper Cruse Formation at depths of typically between 2000 and 3,000 ft.
Current daily production is 31 barrels per day from only 3 of 14 wells. It is the intention to raise this level utilizing regular well maintenance and modernization techniques. Previously producing wells are planned to be reconditioned and others reopened to take advantage of renewed demand and pricing of oil.
Leni Gas will pay a deposit of US $50,000 immediately to secure the deal and a further US $450,000 to gain the benefit of the oil production income by January 12, 2008. Upon the vendor obtaining all necessary permissions and assignments, the Company will issue LGO shares to the value of US $500,000 at the share price on the day Leni Gas & Oil Plc began to receive its 50% share of the income from oil production at the Icacos Field.
David Lenigas, Executive Chairman, commented:
"The option to acquire a half share in a producing oilfield in Trinidad gives the Company a foothold in one of the richest oil and gas bearing areas of the world.
The completion of this acquisition will add both to the Company's production tally and open up opportunities for carefully planned exploration plays.
The potential of the Icacos Field fits with the Company's stated strategy of production plus affordable exploration potential."
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