LGO Energy’s wholly-owned subsidiary, Compania Petrolifera de Sedano, has started the process of obtaining a new 30-year production concession covering the Ayoluengo field.
The field in northern Spain was previously operated by CPS until the termination of La Lora concession on 31 January.
LGO executive chairman Neil Ritson said: “LGO holds all the relevant data, experience, technical studies, staff expertise and oil field equipment needed to rapidly re-establish, and further develop, oil production operations at Ayoluengo.
“We hope that by moving quickly to establish the administrative requirement for a new concession the process can be completed quickly and our Spanish employees can return to paid employment as soon as possible.”
Under European Union and Spanish legislation the offer of a new concession requires a process of public tender in which the previous concession holder has preferential treatment.
By CPS formally requesting a new concession, CPS and the Ministry of Energy, Tourism and Digital Agenda hope to be able expedite that process.
LGO is currently considering various options to apply for a new concession on a sole basis or in partnership with third parties.
At 8:06am: (LON:LGO) LGO Energy PLC share price was 0p at 0.12p
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