Leni to Test Hontomin Discovery in Spain

Leni announced the drill rig is scheduled to be at Hontomin on or around the August 16, 2010 to spud Hontomin well and commence an extended well test on the Hontomin oil discovery in northern on-shore Spain.

The Hontomin prospect is 1350 meters to 1500 meters subsurface and is a proven Lower Jurassic Lias Calcarenite hydrocarbon formation discovered by Chevron in the 1960s which initially tested at an initial rate of 700 bopd. The structure is formed in a highly faulted thrusted anticline and covers a maximum area of 2.9 sq.km with probabilistic OIIP of 2.40 mmbo Mean, 5.71 mmbo P10, 1.34 mmbo P50 and 0.29 mmbo P90.

The objective of the Hontomin program is to appraise the long term production potential of the Hontomin-2 well. The program is expected to take 4 weeks to drill-out and re-complete prior to monitoring production performance over the coming months. The perforation of the existing hydrocarbon intervals and other potential undepleted zones is currently planned for start Q4 2010.

The information from the well shall also be used to further appraise the larger Lower Jurassic conventional oil prospect below the Ayoluengo producing oilfield as previously announced on May 11, 2010.

All well test production from Hontomin will be transported 38km to the production facilities at the Ayoluengo oilfield for processing and oil sales.

David Lenigas, Executive Chairman, commented, "The Company is excited about the potential of Hontomin to bring onstream a second production asset in Spain." 

"The historical performance of the well and the ongoing joint development work with CIUDEN presents a tremendous platform to maximize the commerciality of the Hontomin structure and potentially provide boost to Spain's daily production and revenues."