Leni Oil and Gas widens annual losses as production falls

Leni Gas and Oil (LGO) reported a fall in annual production as a result of a weak performance in the Gulf of Mexico and the sale of properties in the US.

Leni Gas and Oil (LGO) reported a fall in annual production as a result of a weak performance in the Gulf of Mexico and the sale of properties in the US.

Production in the year to December 31st 2012 came to 58,450 barrels of oil equivalent (boe), down from 64,650 boe a year earlier.

The group widened its pre-tax loss to £7.7m from £3.91m, attributable to the loss on the disposal of Gulf of Mexico and Malta assets.

Output in the Gulf of Mexico averaged 19 barrels of oil equivalent per day (boepd) up until the sale of producing properties. Net proceeds from the sale of leases totalled $2.0m.

The company ended the year with no further interests in the US.

LGO also offered its Spanish business for sale but failed to reach a deal with prospective buyers.

In October, LGO acquired the Goudron Field Incremental Production Contract with Petrotrin in south eastern Trinidad. The firm raised £2.4m in new share equity in September through the issue of 600m ordinary shares to purchase the field.

The well was producing more than 100 bopd by year end following workovers.

Contingent resources of over 60m barrels were identified at Goudron associated with a potential future water-flood project of secondary recovery.

"As expected 2012 was a transformational year for LGO with a planned major shift in emphasis on to growth in production and future value in Trinidad," said Chairman David Lenigas.

"The year also presented a number of major challenges as some of the expected merger and asset transactions failed to materialise and market support was poor. Nevertheless the board and I are delighted with the position we have now managed to obtain in the onshore Trinidad oil belt and we see this, supported by our position in Spain, as an exciting future for the company."

Looking ahead, the company will focus on developing proven reserves in the Goudron field, targeting the completion of drilling two new wells in 2013.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
The FTSE 100 has clawed back above 7,000 – how much higher can it go?
UK stockmarkets

The FTSE 100 has clawed back above 7,000 – how much higher can it go?

The FTSE 100 index has risen to over 7,000 for the first time in over a year – it now sits just above where it was in 1999. But its era of neglect cou…
19 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021