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Leni signs deal to acquire Trinidad field

LONDON -- Leni Gas & Oil Plc (LGO) reported the signing of a binding Heads of Agreement (HOA) to acquire a 100% interest of the producing Trinity-Inniss Field in south-eastern Trinidad, close to the Company' s existing Goudron Field operations. LGO plans to acquire 100% of Fram Exploration (Trinidad) Limited (Fram), the company holding the Incremental Production Service Contract (IPSC) for the Petroleum Company of Trinidad and Tobago Limited (Petrotrin) owned Trinity-Inniss Field (the Field).

The HOA is subject to a number of material conditions, including the negotiation in good faith of a definitive agreement and legal, financial, taxation, stakeholders consent, and commercial due diligence on Fram and its business, assets and liabilities.

Highlights:

The Field covers an area of 810 acres and has extensive operational sales tanks and export facilities.

The Trinity-Inniss Oil Field lies approximately 20 kilometres west of the Goudron Field.

Existing production averages between 140-150 bopd from approximately 25 active wells.

Production is derived from the Herrera Sandstone at depths between 1,500 and 5,000 ft.

There is an existing Certificate of Compliance (CEC) granted in 2012 for the drilling of 12 new wells and 50 sidetracks/replacement wells.

Oil quality ranges from 28 to 38 degree API and is sold by means of a Petrotrin-owned pipeline to the Petrotrin refinery at Pointe-a-Pierre.

LGO has identified approximately 20 well reactivation targets and there is considerable infill drilling potential within the Field area.

Stock Tank Oil Originally in Place (STOOIP) has been estimated at 68 MMbbl with an upside of up to 200 MMbbl.

Historic production totals approximately 23 MMbbl.

The Field may also be a candidate for enhanced oil recovery by water-flood.

Neil Ritson, LGO' s CEO, commented: "We are delighted to have the opportunity of adding a further producing IPSC in the Eastern Fields Area of Trinidad to our portfolio. This  transaction will, subject to the conditions being satisfied, add approximately 150 bopd to LGO Trinidad' s current production and we see many similarities between Goudron and Trinity-Inniss, and the scope for rapid production improvements. This acquisition is a natural extension of our Trinidad-focused oil field redevelopment strategy and is ideally timed to take advantage of our growing capability."

"Although our current focus is the drilling of new well developments at Goudron, we would be able to quickly transfer Goudron' s work-over expertise and some of the work-over equipment to Trinity-Inniss to significantly increase the Field' s oil production from 150 bopd. In the medium term, we would be able to extend drilling work to new production wells and the Trinity-Inniss Field also has longer term water-flood potential."

07/17/2014

 

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