Leni Gas & Oil has begun shifting its focus almost entirely to Trinidad and Tobago; what has been the impetus behind this decision, and could you please tell us about it in further detail?

Trinidad and Tobago has an excellent environment for junior companies, and we have found that whatever part of the value chain a junior company occupies, there is always something for them in Trinidad and Tobago. Leni Gas & Oil, in particular, specializes in adding value to mature onshore oil fields and has come to Trinidad and Tobago where there are more opportunities than in our traditional European arena. We are currently in the process of selling our assets in the US and Spain and concentrating our focus on Trinidad and Tobago, where we have a 50% interest in the Icacos Oilfield located on the Cedros Peninsula and have just finished acquiring the Goudron Field contract. Royalty structures and tax payments in Trinidad and Tobago are somewhat more burdensome, but the government is extremely responsive and accessible for discussing these issues. Once our new projects are established, we will be looking for further growth opportunities in Trinidad and Tobago. Companies such as Leni Gas and Oil bring expertise and capital investment to the region, but, equally importantly, we bring important new technologies such as sand control and modern hydraulic fracturing. Currently, there is no “fracking” crew on the island, and we are looking at the possibility of liaising with other companies to bring one in. The synergy that can occur here is a further reason we have found Trinidad and Tobago to be an attractive destination.

What do you feel will be the investor perception of your operations in Trinidad and Tobago?

Arguably, investors prefer the simplicity of an offering. Some could be deterred from investing in a Trinidad and Tobago operation, but others will see the island as a positive investment opportunity compared to Europe. Our projects in Trinidad and Tobago present investors with an attractive mix of investment opportunities from exploration right through to production, which should prove attractive for diverse segments of the investment community.

How are you arranging capital for your Trinidad and Tobago projects, and what does your work programme for 2013 look like?

For immediate cash flow, we are utilizing our production from our Spanish assets, where we are the largest onshore oil producer. Our initial short-term plan is to carry out a number of workovers to ensure the Goudron and Moruga North fields are reaching acceptable production levels. In Goudron Field, we have already completed more than 10 workovers, and our total workover program will involve up to 90 existing wells, of which currently only about 20 are producing. We will commence drilling in 2013 at Goudron, where 20 to 30 new wells are anticipated, and also start drilling new wells at Moruga. The program for the Cedros Peninsula is a longer-term one: we are endeavoring to commission a joint airborne gravity survey over a wide area since the Peninsula has very little existing data. All this work will be funded by our Spanish capital; if we are successful in selling our Spanish assets, the work program here will be accelerated and larger in scope. In the meantime, we have recently raised new equity on the London market.

Is the current focus on offshore exploration favoring companies like Leni Gas and Oil that specialize in onshore exploration?

Leni Gas and Oil has been operating as an onshore oil producer in Trinidad for over four years and has gained an early-mover advantage in the mature onshore space. The company has found an area in Trinidad and Tobago where it can apply its technologies and expertise, adding opportunities to its portfolio that were lacking in Europe. Leni Gas and Oil believes that the focus on offshore exploration in recent decades has been beneficial for them as it has left these onshore opportunities open.

What are Leni Gas & Oil’s medium-term goals?

Leni Gas and Oil aims to achieve top-tier status as a junior onshore operator in the next five years, primarily in Trinidad. The company plans to produce between 5,000 and 10,000 barrels of oil per day, which is a significant increase from their current production of only 300 barrels per day worldwide. Leni Gas and Oil believes that the reserves are in the ground, and the technology is available to achieve this level of growth. Additionally, the company has alignment with the government of Trinidad, which supports their aspirations. However, Leni Gas and Oil recognizes that there will be stiff competition from the likes of Trinity-Bayfield, Range Resources, Territorial, and others. Nevertheless, the company believes that healthy competition can help them thrive.

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