Leni Gas & Oil has “good chance” of getting production back on target at Ayoluengo, says Shore Capital
Leni Gas & Oil (LON:LGO) has a good chance of getting production back up to targeted levels by the end of the year following the restart of production from the Ayo-37 well in Spain, says Shore Capital's Craig Howie.
In a statement late yesterday afternoon Leni told investors that the Cardwell rig, which it owns, has been successfully re-commissioned and it has returned to active deployment on the Ayoluengo field.
The rig's first task was to return the Ayo-37 well to production. This was successfully completed, Leni said.
The company said that all routine maintenance and five-year safety checks have been completed. Additionally some other equipment was upgraded to meet all required safety standards.
The Ayo-37 well had been off-line due to a down-hole pump problem. Yesterday Leni said that no significant issues were found with the well as it was put back into production.
Previously the Ayo-37 well produced an average of 149 barrels of oil per day since it was re-perforated during the well intervention campaign in June.
In a note to clients this morning Shore Capital analyst Craig Howie said: "To our minds, it is encouraging to see the well maintenance and intervention programme underway again at Ayoluengo, where we believe that, with a fair wind, Leni Gas & Oil has a good chance of getting production levels back up to within its previous targeted range by year-end."
Related news
- London Mining remains on track to hit 2012 production target at Marampa
- Ceres Power Holdings reports significant improvements of its fuel cell products
- Oxford Catalysts Group shares advance as it announces first start-up of FT reactor
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
