Leni Gas & Oil has provided its monthly production update for March 2009.
During March the Company's direct and indirect monthly production totalled 17,753 boe (average 573 boepd) which was slightly reduced from February (19,045 boe) due to scheduled development programs in Spain, Hungary and Trinidad with 30% of total Company production planned offline. The monthly production update from all countries of operation is summarized 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 4,072 bbls and 1.038 mmscf of gas during the month. Net LGO production in barrels of oil equivalent totalled 4,245. Monthly production was lower than the previous month due to almost 60% of the production being offline due to the execution of the final stages of the first phase field stimulation program which shall continue to early May. The final stages of the field stimulation program are targeting efficiency improvements to the production facilities and rehabilitation of all wells to improve productivity, with initial results to date realising 40% increases in individual well production. The second phase of field stimulation is currently planned for the end of the second quarter 2009 which shall perforate 400 metres of undepleted production zones.
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 6,000 boepd gross from the Eugene Island field as announced by the joint venture operator on 25 February 2009. 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. As announced on 08 April 2009, LGO has completed a Heads of Agreement with Byron Energy to transfer the Company's shareholding in Byron Energy from an indirect to a direct ownership of its US Gulf of Mexico oil and gas assets. LGO's share of the producing Eugene Island Field at the February 2009 reported rates equates to direct production to LGO of approximately 435 boepd.
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 916 bbls during the month with 25% of production offline due to planned well interventions. The Oilfield produces no gas. Net LGO production in barrels of oil equivalent totalled 458.
David Lenigas, Executive Chairman, commented, "March saw only a small reduction in the Company production schedule despite almost 30% of the total production planned offline due to scheduled development programs in three out of four countries of production operations.
"In Spain, the last two stages of the first phase stimulation program are targeting major production facilities efficiency and well productivity improvements. Combined, these will realize a significant production increase by early May of about 40%. The second phase stimulation program due for completion in summer 2009 is targeting to increase Spain production to over 1,000 bopd.
"In Hungary, sidetrack of the Pen-104 production well continues to plan with gas sales production expected by end April and in Trinidad well intervention shall return the production schedule to full capacity in April.
"The Company expects the April production schedule to be similar to March until all planned development programs are completed, with the May schedule targeting to report a significant increase in production near to 1,000 bopd. In the near term the Company expects to release the full production schedule for our Gulf of Mexico interests further to the announcement last week on the indirect to direct ownership conversion."
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