Leni Gas and Oil plc
Corporate Update
24 April 2014
Neil Ritson, CEO
London (AIM): LGO
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Delivering Growth through the Acquisition
of Proven Reserves & Enhancement of
Producing Assets
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Company Profile
London Stock Exchange
Producing Oilfields
- listed March 2007
- Trinidad and Spain
London HQ
Spain
Trinidad
Staff
Net Production
P2 Reserves
Market Cap
-
50 (98% local)
500 bopd
7.6 mmbbls
£22 million
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London Management and Board of Directors
Chairman
David Lenigas
Holds a Bachelor of Applied Science in Mining Engineering and has 30 years of resources industry
experience. Until recently he was the Executive Chairman of Lonrho plc. David is also the Executive
Chairman of Stellar Resources plc, Solo Oil plc, Rare Earth Minerals plc and AfriAg plc.
Chief Executive
Officer
Neil Ritson
Chief Operating
Officer
Fergus Jenkins
Director of
Finance
James Thadchanamoorthy
Non-Executive
Director
Steve Horton
Has a BSc in Geophysics. He has worked in the energy sector for over 35 years, initially with BP plc
for 23 years before managing the international operations of Burlington Resources Inc. and more
recently as CEO at Regal Petroleum plc, before founding the Vanguard Energy Group where he was
Chairman and CEO. He is a Director of Solo Oil plc and a Non-Executive at Enovation Resources Ltd.
Is a Chartered Engineer with a BEng in Mining Engineering and a MEng in Petroleum Engineering. He
has over 20 years of experience working in industry, initially in mining before moving to petroleum,
where he has worked for most of his career in mid-sized independent oil companies, including
Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc.
Has a degree in Chemistry and is a qualified accountant. He has 18 years’ experience, including over
10 years spent at BP where he held a number of commercial and finance leadership positions.
Holds a BSc in Mining Engineering and an MBA. He has 35 years experience working in the energy
industry including 27 years with BP plc where he held executive roles including worldwide Director
of Drilling. He co-founded Silverstone Energy Limited in 2005. Steve is a Non-executive Director of
Seamwell Limited and, until the recent merger, of Valiant Petroleum plc.
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Topics Today
 Trinidad

Goudron Field

Infrastructure

Drilling update

Production

Cedros Peninsula
Goudron Station 207
 Spain

Ayoluengo Field update

Pansoinco Partnership
 Summary

Share Price Performance

Financing
Ayoluengo Well 37
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TRINIDAD
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LGO’s Trinidad Assets
Goudron IPSC (100%) with 2P reserves
of 7.2 mmbbls and over 60 mmbbls of
contingent resources associated with a
future water flood. Active production
from 70 reactivated wells and growth
from imminent 30 well infill drilling
Icacos Field in the Cedros Peninsula
(50%, non-operator), producing ~35
bopd from three wells. Future
opportunities for infill drilling
Over 7,500 acres of largely unexplored
100% owned private oil leases in the
Cedros and adjacent rights held in
partnership with Beach Oilfield Limited
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Goudron Phase 1: Infrastructure
• Located in the remote primary forests of
the Trinity Hills close to a Wildlife
Sanctuary
Sales Tank Battery #34
• Limited work undertaking for 30 years
• LGO has:
• Doubled sales tank capacity
• Refurbished previous tank facilities
• Repaired bridges and roads
• Installed an entirely new camp
facility
• Extended and restored electrical
power
• Constructed new water treatment
facilities
• Reactivated about 70 old wells
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Goudron Phase 1: Infrastructure
• A newly commissioned
camp with:
•
•
•
•
•
•
offices
workshops
stores
hot-work area
crew rest area
accommodation
• All key infrastructure is
now in place for the
upcoming 30 well drilling
campaign
and
• for oil production of over
2,000 bopd
Goudron Camp David
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Goudron Phase 1: Production
• Phase 1 reactivations have now
peaked
• Some reactivations still ongoing with
potential for further recompletions,
gas lift and condensate production
• Considering a long term stable
economic rate of 275 – 325 bopd
from the old wells
• Focus on Phase 2 production which is
budgeted conservatively at 65
bopd/well (IP)
• Upside in new wells estimated +150%
of budget (~160 bopd), downside is
estimated at -25% (~45 bopd)
Goudron Typical Well
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Goudron Phase 1: Production – Typical Well
Drilled in 1957, completed in 290 feet of Goudron Sand, produced 78,020 bbls over 15 years
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Goudron Phase 2: Development Drilling
• Production to date, using primary
pumped wells, has achieved recovery
of less than 4 million barrels
• Significant parts of the field have not
be swept, especially at Cruse level
• Previous drilling techniques can be
vastly improved
• A program of 30 new development
wells, infilling and extending the
field, is now underway
• Rig mobilisation started 16th April
• STATUS: rig components and
equipment transferred to the field
and rig-up underway
Rig 20 at Palo Seco
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Goudron Phase 2: Well H18 EJ7
H18EJ7
H18 EJ-7 is the
first new well
on Goudron
for 33 years
Goudron
Sands are
productive in
offset wells
Gros Morne is
productive in
nearest well
Lower Cruse
sands are
productive in
some wells
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Cedros Peninsula
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LGO Cedros Lease Position
Installing new well tanks
Beach Oilfield Cedros Leases
FRM-1 Deep Well
3D Seismic
LGO Cedros Leases
In-line 4100
Icacos Field
Bonasse Field
Icacos Leases
Galpha Point
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LGO Cedros – 3D Seismic Data
South
Installing new well tanks
0 sec
North
Icacos
Southern Range Anticline
1 sec
2 sec
In-line 4100
3 sec
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Plans for the Cedros
• In collaboration with Beach Oilfield
re-evaluate all existing data and
wells
Installing new well tanks
• Acquiring a soil geochemistry
survey to isolate micro-seepage and
areas of fractionated light oil
• Fly a high resolution gravity and
magnetics survey
• Acquire additional 2D seismic data
if necessary to define well locations
• Drill at least one deep exploration
well to test the potential at Herrera
Sandstone level
Galpha Point Mud Volcano
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Unexplored deep prospectivity
Oil impregnated Herrera Sandstone
from ~10,000 feet sub sea, thrown up
by the Galpha Point Mud Volcano
Installing new well tanks
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SPAIN
Ayoluengo Field, Cantabrian National Park, Spain
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Spanish Assets
Onshore Northern Spain
Cantabrian mountains between
Burgos and Santander
Ayoluengo Oilfield
Discovered 1964
Produced 18 mmbbls
Oil in place 104 mmbbls
Hontomin Oilfield
Discovered 1968
Test production only
Oil in place < 4 mmbbls
Tozo Gas Field
Discovered 1965
Test production only
Gas in place 5 bcf
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Ayoluengo Potential
• Future opportunities to enhance
production through the sidetracking of existing wells to reach
unswept oil
• Major investment only justified
once the Concession is extended
• Concession extension process to
commence in 2014
• Probable timeline to complete
extension 18-24 months
• Seismic, sedimentological and
engineering studies now
underway in parallel
Ayoluengo Field
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Wider Spanish Potential
• Development of Hontomin as a
low cost satellite to Ayoluengo
using existing 3D seismic and
re-entry of existing wells
• Development of Tozo as either
a micro-Compressed Natural
Gas or Gas-to-Wire project
• Deepen Ayoluengo to the
proven Liassic reservoirs
• Sub-lease the shale gas
exploration potential in the
Sedano trough?
• Secondary or tertiary recovery?
Cantabrian Massif at Sergentes
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Proposed Pansoinco Partnership
• Italian privately owned oil and
gas maintenance and
operations group
• Create access to Pansoinco’s
resources to enhance
production at no cost to LGO
for 3 years
• LGO’s predicted 3-year
cashflow is advanced to the
date of transaction
• Incentivises Pansoinco to invest
in production growth and seek
a concession extension to 2027
Well work over Ayoluengo
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How it works…
2500
LGO receives estimated 3-year discounted cashflow
2000
Revenue interest
reverts to 65:35%
Quarterly Net Revenue ('000 Euro)
1500
1000
Pansoinco makes a return
500
0
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
-500
Pansoinco invests
-1000
-1500
-2000
-2500
Base revenue
LGO net
Pansoinco planned investment
Pansoinco net case
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Why it works…
At the end of the 3-year period:
• Ownership of revenue reverts
to 65:35%
• LGO’s 35% revenue is greater
than the 100% of base revenue
that would have resulted
• In the interim LGO has had use
of $2.8 million to deploy in
Trinidad
600
Quaterly Net Revenue ('000 Euro)
• Pansoinco have made a
worthwhile return on their
investment (IRR > 30%)
700
500
400
300
200
100
0
4Q16
Base revenue
1Q17
LGO net
2Q17
Pansoinco net case
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CONCLUSIONS
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Share Price Progression
Equity
£1.3
Royalty
Reduction
BOLT
Pansoinco
Partnership
Reduced taxation
500 bopd
Goudron
CEC
High Court
Mobilisation
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Conclusions
• Phase 1 production at Goudron from legacy wells now planned to
stabilise at a long-term rate of roughly 275-325 bopd
• Phase 2 development drilling underway in next few days; forecast to
take total production to 2,000 bopd within 18 months
• Once some of the new wells have been drilled LGO will develop a
Phase 3 water flood development plan and issue a new CPR
• Exciting medium term opportunity in the Cedros peninsula
• Relationship with Pansoinco could provide a short-term cash boost
and a long-term value driven partnership in Spain
• Debt funding based on established cash-flow and underlying
reserves at Goudron is still actively being sought
• New production-based opportunities in Trinidad are being reviewed
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Thank you for your attention
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Forward Looking Statements
Certain statements in this presentation are “forward looking statements” which are not based on
historical facts but rather on the management’s expectations regarding the Company's future growth.
These expectations include the results of operations, performance, future capital, other expenditures
(amount, nature and sources of funding thereof), competitive advantages, planned exploration and
development drilling activity including the results of such drilling activity, business prospects and
opportunities. Such statements reflect management's current beliefs and assumptions and are based
on information currently available.
Forward looking statements involve significant known risks, unknown risks and uncertainties. A
number of factors could cause the actual results to differ materially from the results denoted in these
statements, including risks associated with vulnerability to general economic market and business
conditions, competition, environmental and other regulatory changes, the results of exploration,
development drilling and related activities, actions by governmental authorities, the availability of
capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many
of which are beyond the control of the Company.
Although these statements are based upon what management believes to be reasonable assumptions,
the Company cannot assure investors that the actual results will be consistent with these forward
looking statements.
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