Leni Gas & Oil, Latest Map Reveals Size & Scale of the Goudron Field & Trinidad Operations

Leni Gas & Oil, (LGO:AIM) the Trinidad focused oil company, today published a new map of their Trinidad operations. The map reveals the locations of the first five wells, spud as part of the 30 well redevelopment program plus the details of the locations of future wells that will be spud on the Goudron field.

In addition there is also a 3D diagram of the Gros Morne reservoir illustrating the pay zones in the Gros Morne and Lower Cruse structures.

The location of the Icacos oilfield and Trinity Innis oilfield are also shown. Leni Gas & Oil has an option to acquire 100% of Trinity Innis, which was announced to the market on the 16^th July 2014. Trinity Innis is a producing oilfield where production averages between 140-150 barrels of oil per day ("bopd") from approximately 25 active wells.

What is striking about this map is the size and scale of the Goudron acreage which is 3.5 kilometres by 2.5 kilometres 

It is a huge area that has massive production upside. It is clear from the map that Texaco did not really venture properly into the Goudron field as there are huge areas of unexplored acreage that clearly has the potential to be drilled.

The other really important point is that if LGO secure the option over Trinity Innis they will get game changing production output and almost certainly like Goudron have a field that has the potential for further exploration.

I think this map is a really great illustration 

Horse Hill Now Drilling. My guess is that this is now a major oil play

Drilling commences at Horse Hill

I have no doubt there is Oil and Gas in the Weald Basin. 

The geology is well known. All the ingredients are in place. Source Rock, Reservoir Rock, Seals, Traps and Maturation. Initially my assessment of Horse Hill led me to think this was a gas play, however after evaluation, I suspect the Kimmeridge clays are probably a major oil source.

This has to be one of the most exciting onshore exploration adventures for many years. There is a good technical team on the drill site. The Weald Basin is well known geologically and Horse Hill is not really an exploration story as such, its more of an evaluation story. The value in the Horse Hill well and for investors will be the technical outcomes. The contact data will be really useful.

If gas is found in the Weald Basin it must be sourced from either the older Triassic or deeper Palaeozoic strata and not the Liassic shales, which is the source for the oils. Horse Hill are at least targeting the correct structure (Triassic) Its pretty exciting and a very considered drill program from a technical perspective.

The Horse Hill-1 well is planned to be drilled to a Total Depth ("TD") of 2,646 metres (8,680 feet) and is designed to test for a number of conventional stacked oil targets in the Jurassic, as well as a deeper conventional gas target in the Triassic.

The operator, Horse Hill Developments Ltd ("HHDL"), is a special purpose company with a 65% operating interest in the PEDL 137 license in the Weald Basin to the north of Gatwick Airport in Surrey. UKOG has binding agreements in place to own a direct 20% interest in HHDL and an additional 2.4% interest by virtue of its 6% ownership in Angus Energy Limited ("Angus Energy"). Angus Energy owns 40% of HHDL.

The participants in the Horse Hill Prospect are HHDL (65%) and Magellan Petroleum Corporation (35%).

David Lenigas, the Company's Chairman, commented:

"This is an exciting time for UKOG as we embark on this well that will not only test a number of conventional oil formations, but will be one of the first wells drilled in this part of the Weald Basin to test for the potential for conventional gas in the deeper Triassic formations."

About Horse Hill:

The 99.29 km² (24,525 acre) Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL 137) ("Horse Hill") is located in Surrey, a few miles from Gatwick Airport.

The Horse Hill Prospect OOIP and OGIP and prospective resources, as announced by UKOG on 20 December 2013, are summarised in Table 1.

Table 1: Horse Hill Prospect estimated OOIP, OGIP and Prospective Resources.

Target Reservoir Oil	OOIP Upside Potential (MMSTB)	OOIP Mean (MMSTB)	Prospective Resources Mean (MMSTB )
Upper Portland Sandstone	116	57	17
Lower Portland Sandstone	284	147	44
Corallian Sandstone	67	33	10
Greater Oolite Limestone	204	104	16
Total Oil	671	341	87
Target Reservoir Gas	OGIP Upside Potential (Bcf)	OGIP Mean (Bcf)	Prospective Resources Mean (Bcf)
Triassic Sandstone	456	234	164