Leni Gas and Oil (LGO) has terminated its negotiations with Spanish firm Pansoinco over a possible partnership in developing assets in the country.
The deal focused on discoveries in Northern Spain, including the producing Ayoluengo field and the prospective Hontomin field development.
LGO decided to retain its 100% interest in the assets following a successful drilling campaign in Trinidad.
The company is now looking to secure a production concession for Hontomin as well as additional well maintenance and stimulation of the producing wells at Ayoluengo.
However, the firm added it wouldn’t rule out a future Spanish partnership, but for now feels the financial security afforded by its operation in Trinidad allows the company to go it alone.
“In the light of the recently announced successful drilling and production results in Trinidad, the company has reassessed the benefits of the proposed partnership and is now firmly of the opinion that greater value can be obtained from the Spanish assets through LGO investing in additional well capacity in the period of 2016 to 2020, at a time when there is expected to be free cash flow available from the Company’s operations in Trinidad,” said Neil Ritson, LGO’s chief executive.
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