LENI GAS & OIL : Goudron Drilling Update, GY-668

For Immediate Release

21 August 2014

Leni Gas & Oil PLC

("LGO" or the "Company")

Goudron Drilling Update, GY-668

LGO is today pleased to announce that well GY-668, the fifth of its planned 30 new development wells at the Goudron Field in Trinidad, and the fourth well from this drill pad, has been successfully drilled to a depth 1,946 feetmeasured depth ("MD").  Based on independent petrophysical analysis of the electric logging the well intersected 191 feet of net oil pay in the Goudron Sandstones.

Neil Ritson, LGO's Chief Executive, commented:

"We are continuing to deliver a successful drilling programme at Goudron and are now looking forward to completing these four wells for production."

The well has been cased to a depth 1,936 feet MD in order to isolate the Goudron Sandstone and is now preparing to drill ahead to the primary Gros Morne Sandstone oil target which is expected at approximately 2,150 feet true-vertical depth ("TVD").

Well GY-668 has a planned total depth ("TD") of 3,000 feet measure depth ("MD") (equivalent to 2,880 feet TVD to a bottom-hole location that is approximately 680 feet west of the surface location. 

Once TD is reached the well will be logged and cased ready for completion as a production well.  

In separate news, the Company confirmed that the additional 2,000 barrel sales tank has now been constructed as planned and work is underway to complete installation and tie-in of this tank to the export line ahead of the additional production capacity becoming available.  Preparation of the third drilling pad is also advancing in anticipation of moving Well Services Rig 20, currently drilling GY-668, to drill a further four wells in the 30 well programme.

A summary of the drilling program results to date is given in the Appendix below. 

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc, who has over 35 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London.

Enquiries:

Leni Gas & Oil plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Pelham Bell Pottinger

Appendix:

All depths are quoted as measured depth in feet below Kelly bushing

np = not penetrated

Glossary:

Pay:                       A reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay.

MD:                        Measured Depth

TD:                         Total Depth

TVD:                      True Vertical Depth