Leni Gas & Oil (LGO) has provided its monthly production update for February 2009.
During February, the Company's direct and indirect monthly production totaled 19,045 boe which was only slightly reduced from January due to planned work programs in all countries of operations and a shorter working month. The monthly production update from all countries of operation is summarised as follows:
The Ayoluengo Oilfield (100% LGO) in northern Spain, through LGO's 100% ownership of Compania Petrolifera de Sedano, S.L. produced net to LGO 5,346 bbls and 0.896 mmscf of gas during the month. Net LGO production in barrels of oil equivalent totaled 5,495. Monthly production was lower than the previous month due to the commencement of the second stage of the field stimulation program which shall continue until the end of March. Initial results from this program stage are realising 20-40% increases in individual well production with February closing at almost 300 bopd with several wells offline.
The Icacos Oilfield (50% LGO rights) located on the Cedros Peninsula of Trinidad, through LGO's 100% ownership of Eastern Petroleum (Australia) P/L produced gross 999 bbls during the month. The Oilfield produces no gas. Net LGO production in barrels of oil equivalent totalled 500.
The Penészlek Gasfield (7.27% LGO) in eastern Hungary, through LGO's 7.27% ownership of PetroHungaria Kft is currently shut-in due to the failure of a compressor at the downstream gas processing facility. The facility is scheduled to be online in March when the production well shall be tested prior to a scheduled 450m sidetrack of the well to substantially increase the potential recoverable gas and reduce the amount of water produced by the well. The production schedule of ZalaGasCo Kft (14.74%) LGO) in western Hungary will be announced in due course.
US Gulf of Mexico & Lower 48
The interests held by Byron Energy (28.94% LGO) in the US Gulf of Mexico and Lower 48 is now producing approximately 6000 boepd gross from the Eugene Island field as announced by the joint venture operator on February 25. LGO's indirect interest in the Eugene Island field through Byron Energy approximates to an effective net LGO monthly production in barrels of oil equivalent totalling 13,050. Production was almost 20% greater than last month with the Eugene Island A-6 well coming onstream after a successful re-completion which was tested at a stabilized rate of 1,750 boepd as announced on February 25.
David Lenigas, Executive Chairman, commented, "February saw a 20% increase in daily well production in the Gulf of Mexico, following the successful re-completion in Eugene Island,. In Spain, initial results from the commencement of the next stage of the well stimulation program at Ayoluengo are very positive with individual well production realising 20-40% increases. Trinidad delivered similar volumes to last month while Hungary was shut-in with the third party processing facilities temporarily shutdown for repair.
"The increased production in Gulf of Mexico completes the first stage of the Eugene Island development program and will contribute a very significant percentage of LGO's attributable production schedule during 2009. Commencement of the next stage of well stimulation activity in Spain continues the multiple phase development program to fully rehabilitate all wells and optimise all production facilities which will see another step change in Spain production by the end of March."
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