LONDON (ShareCast) - Leni Oil & Gas (LGO) said the completion of a farm-in agreement meant it could ramp up activity in Trinidad.
LGO has taken over leases in the North Moruga area from the Advance Oil Company meaning it will be assigned a 49% interest in the private petroleum leases and Petrotrin sub-leases.
It will also operate all the advance leases, in return gaining an immediate 33% interest in production revenues.
LGO now plans to work-over the existing wells as soon as practical and drill up to ten new wells on the leases over a 3 year period beginning in 2013.
Its (Euronext: ALITS.NX - news) interest revenues will increase to a maximum of 49% when the company completes the planned wells.
"Completion of the farm-in comes at an ideal time for LGO as we can now scale-up our operations in Trinidad from the existing resources focused on Goudron," said Chief Executive Neil Ritson.
"We have an excellent team in country and with production from Goudron now increasing they will be able to turn their attention to Moruga North in 2013."
The leases cover an area of approximately 1,220 acres and lie between the West Moruga Field which has produced 25m barrels of oil and the Innis, Antilles and Trinity Fields which have produced approximately 15m barrels.
Moruga North is approximately 35km west of existing LGO operations at Goudron.