Leni Gas & Oil unveils update on Maxim joint venture in Trinidad

AIM-listed Leni Gas & Oil (LGO) has published an update on its joint venture agreement in Trinidad with Vancouver-based oil and gas production company Maxim Resources, relating to a proposed transaction whereby Maxim and LGO would work together to pursue oilfield development opportunities in the Republic of Trinidad and Tobago.

LGO said that the "TSX Venture Exchange in Toronto has now released the hold on Maxim shares" and cited a press release issued by Maxim which it said clarified the terms of the proposed transaction.

LGO pointed out that the press release represented additional clarification of terms which had already been agreed between it and Maxim and said that it didn't represent any amendment to the heads of agreement (HOA).

According to Maxim's website, it holds a 69% net revenue interest in exploration and production of Jasmin within the South Erin Block in onshore Trinidad, through New Scotland Oil and Gas.

After payout of the investment to Maxim, Maxim's website states that net revenue Interest will reduce to 41%. It further points out that Jasmin has drilled five wells to date and the exploration licenses for this Block allow for up to a further 42 wells to be drilled.

According to Leni Gas & Oil's website, its Trinidad operation comprises four main assets; the Goudroun field IPSC, the Moruga North Leases, the Cedros Peninsular Leases and production potential is estimated to be in the range of 1,000-to-4,000 barrels of oil per day.

MF