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1 Leni Gas and Oil plc Corporate Update 24 April 2014 Neil Ritson, CEO London (AIM): LGO.

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Presentation on theme: "1 Leni Gas and Oil plc Corporate Update 24 April 2014 Neil Ritson, CEO London (AIM): LGO."— Presentation transcript:

1 1 Leni Gas and Oil plc Corporate Update 24 April 2014 Neil Ritson, CEO London (AIM): LGO

2 2 Delivering Growth through the Acquisition of Proven Reserves & Enhancement of Producing Assets

3 3 Company Profile Trinidad Spain London HQ London Stock Exchange- listed March 2007 Producing Oilfields- Trinidad and Spain Staff- 50 (98% local) Net Production bopd P2 Reserves- 7.6 mmbbls Market Cap- £22 million

4 4 London Management and Board of Directors ChairmanDavid 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 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. Chief Operating Officer Fergus Jenkins 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. Director of Finance James Thadchanamoorthy 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. Non-Executive Director Steve Horton 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 Steve is a Non-executive Director of Seamwell Limited and, until the recent merger, of Valiant Petroleum plc.

5 5 Topics Today  Trinidad  Goudron Field  Infrastructure  Drilling update  Production  Cedros Peninsula  Spain  Ayoluengo Field update  Pansoinco Partnership  Summary  Share Price Performance  Financing Goudron Station 207 Ayoluengo Well 37

6 6 TRINIDAD

7 7 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

8 Goudron Phase 1: Infrastructure Located in the remote primary forests of the Trinity Hills close to a Wildlife Sanctuary 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 8 Sales Tank Battery #34

9 9 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 Phase 1: Infrastructure Goudron Camp David

10 10 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 Phase 1: Production Goudron Typical Well

11 11 Goudron Phase 1: Production – Typical Well Drilled in 1957, completed in 290 feet of Goudron Sand, produced 78,020 bbls over 15 years

12 12 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 16 th April STATUS: rig components and equipment transferred to the field and rig-up underway Rig 20 at Palo Seco

13 13 Goudron Phase 2: Well H18 EJ7 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 H18EJ7

14 14 Cedros Peninsula

15 LGO Cedros Lease Position 15 Installing new well tanks Beach Oilfield Cedros Leases Icacos Leases 3D Seismic Bonasse Field Icacos Field LGO Cedros Leases Galpha Point FRM-1 Deep Well In-line 4100

16 LGO Cedros – 3D Seismic Data 16 Installing new well tanks North South In-line sec 1 sec 2 sec 3 sec Southern Range Anticline Icacos

17 Plans for the Cedros 17 Installing new well tanks In collaboration with Beach Oilfield re-evaluate all existing data and wells 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

18 Unexplored deep prospectivity 18 Installing new well tanks Oil impregnated Herrera Sandstone from ~10,000 feet sub sea, thrown up by the Galpha Point Mud Volcano

19 19 SPAIN Ayoluengo Field, Cantabrian National Park, Spain

20 20 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

21 21 Ayoluengo Potential Future opportunities to enhance production through the side- tracking 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 months Seismic, sedimentological and engineering studies now underway in parallel Ayoluengo Field

22 22 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

23 23 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

24 24 How it works… LGO receives estimated 3-year discounted cashflow Pansoinco invests Revenue interest reverts to 65:35% Pansoinco makes a return

25 25 Why it works… At the end of the 3-year period: Pansoinco have made a worthwhile return on their investment (IRR > 30%) 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

26 Change the picture 26 CONCLUSIONS

27 27 Share Price Progression Equity £1.3 Royalty Reduction Goudron CEC Pansoinco Partnership Reduced taxation BOLT 500 bopd High Court Mobilisation

28 28 Conclusions Phase 1 production at Goudron from legacy wells now planned to stabilise at a long-term rate of roughly 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

29 29 Thank you for your attention

30 Forward Looking Statements 30 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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