Leni Gas & Oil (LGO) Lot of rumour flying around at the moment regarding Leni production. As yet unconfirmed but it seems likely that last week 500bopd was hit whether this is being sustained is as yet unknown but it is known by the BMD site that Mr DL was targeting 500bopd as the first meaningful production target on the Leni chart.
I’d expect an update could be in the Trinidad pipeline if as we suspect production continues to rise or stabilises around the 500bopd mark. (Last confirmed number was 349 bopd). The 500bopd target for 2013 now seems likely to be exceeded.
As some one from another site recently wrote “no great surprises on in its unaudited interim results for the six months to June 30 2013. But the interims do indicate a very busy period for Leni”
Malta. Legals still proceeding. Spain. LGO says that the Ayoluengo field saw a decline in output and a stoppage of sales in June. Leni stopped negotiations at the end of 2012 for the sale of the assets. But the company is still conducting discussions with potential partners to advance the development of the field.
If I was a holder I’d concentrate on Trinidad as the driver of value at the moment. In particular Goudron with approx. 90 existing wells. In December 2012, the field was producing approx.105 bopd. After an intensive programme of workovers and reactivations (which are still continuing into 2013) the bopd is definitely on the up. The Goudron licence is located in the Cedros Peninsula in Western Trinidad. Goudron being one of three assets. The other two being the Icacos permit, also on the Cedros Peninsula with production of 35 bopd. It could double this with more drilling, which is on the cards. The third is the Moruga North acreage, (LGO49%) which is best described as quiet.
Goudron, in contrast has seen a lot of action. Leni took over the 100% owned Goudron field in October 2012. There were about 90 existing wells. By Christmas 2012, the field was producing some 105 bopd. After a programme of workovers and reactivations which have continued into 2013. 42 wells had been reactivated by the end of June. A number of beam pumps bought locally and made originally in China has helped boost output. Leni plans another 30 new infill wells. Leni have been briefing the industry that they think 2,000 bopd from Trinidad can be reached.
In August of this year successful negotiations to reduce the overriding royalties paid to state oil company Petromin were concluded and in mid-September substantial improvements were made to Trinidad’s capital expenditure tax allowances. Both moves will add to cash flow from production. Every little bit helps.
All in all move Leni up the watchlist ladder. 500 bopd is a decent production number and could indicate that the company are on track to get close to the 2,000 bopd target.