The Ayoluengo Oilfield (100% Leni Gas & Oil) in northern Spain, through Leni Gas & Oil’s 100% ownership of Compañia Petrolifera de Sedano, S.L. produced net to Leni Gas & Oil 4,072 bbls and 1.038 mmscf of gas during the month. Net Leni Gas & Oil production in barrels of oil equivalent totalled 4,245. Monthly production was lower than the previous month due to almost 60% of the production being offline due to the execution of the final stages of the first phase field stimulation program which shall continue to early May. The final stages of the field stimulation program are targeting efficiency improvements to the production facilities and rehabilitation of all wells to improve productivity, with initial results to date realizing 40% increases in individual well production. The second phase of field stimulation is currently planned for the end of the second quarter 2009 which shall perforate 400 meters of undepleted production zones.

US Gulf of Mexico & Lower 48

The interests held by Byron Energy (28.94% Leni Gas & Oil) in the US Gulf of Mexico and Lower 48 is now producing around 6,000 boepd gross from the Eugene Island field as announced by the joint venture operator on February 25, 2009. Leni Gas & Oil’s indirect interest in the Eugene Island field through Byron Energy approximates to an effective net Leni Gas & Oil monthly production in barrels of oil equivalent totalling 13,050. As announced on 08 April 2009, Leni Gas & Oil has completed a Heads of Agreement with Byron Energy to transfer the Company’s shareholding in Byron Energy from an indirect to a direct ownership of its US Gulf of Mexico oil and gas assets. Leni Gas & Oil’s share of the producing Eugene Island Field at the February 2009 reported rates equates to direct production to Leni Gas & Oil of around 435 boepd.


The Peneszlek Gasfield (7.27% Leni Gas & Oil) in eastern Hungary, through Leni Gas & Oil’s 7.27% ownership of PetroHungaria Kft is currently shut-in pending completion of the Pen-104a sidetrack targeting a higher part of the structure to maximise recoverable reserves. Completion and testing of the Pen-104a sidetrack is expected by the second half of April and the well shall be immediately placed on gas sales production using the existing processing and transportation infrastructure. The production schedule of ZalaGasCo Kft (14.74%) Leni Gas & Oil) in western Hungary will be announced in due course.


The Icacos Oilfield (50% Leni Gas & Oil rights) located on the Cedros Peninsula of Trinidad, through Leni Gas & Oil’s 100% ownership of Eastern Petroleum (Australia) P/L produced gross 916 bbls during the month with 25% of production offline due to planned well interventions. The Oilfield produces no gas. Net Leni Gas & Oil production in barrels of oil equivalent totalled 458.

David Lenigas, Executive Chairman, commented:

“March saw only a small reduction in the Company production schedule despite almost 30% of the total production planned offline due to scheduled development programs in three out of four countries of production operations.”

“In Spain, the last two stages of the first phase stimulation program are targeting major production facilities efficiency and well productivity improvements. Combined, these will realise a significant production increase by early May of about 40%. The second phase stimulation program due for completion in summer 2009 is targeting to increase Spain production to over 1,000 bopd.”

“In Hungary, sidetrack of the Pen-104 production well continues to plan with gas sales production expected by end April and in Trinidad well intervention shall return the production schedule to full capacity in April.”

“The Company expects the April production schedule to be similar to March until all planned development programs are completed, with the May schedule targeting to report a significant increase in production near to 1,000 bopd. In the near term the Company expects to release the full production schedule for our Gulf of Mexico interests further to the announcement last week on the indirect to direct ownership conversion.”