LGO Divests Non-Core Assets in Hungary
As part of the resources assessment during the last months, Leni Gas & Oil (LGO) has decided to divest all of its investments in Hungary, composed of 14.54% of ZalaGasCo Kft and 7.27% of PetroHungaria Kft.
LGO has assessed both investments in detail with the Company's geotechnical provider, Equipoise, and production technology provider, Eclipse Petroleum Technology Ltd ("Eclipse"), and concluded both ZalaGasCo and PetroHungaria ventures will not provide a material return on the Company's investment of 2 million Euros for Hungary.
LGO has therefore decided to relinquish its acreage in both ZalaGasCo and PetroHungaria, write off the Hungary investment in the Company accounts and will reallocate future Hungary development capital to the other countries of operations.
David Lenigas, Executive Chairman, commented, "The Company has decided to divest its investment in Hungary, which is now considered a non-core asset. This decision allows the Company to divert additional capital resources to the core countries of operation to accelerate exploitation plans."
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