LGO has made further progress on its Cedros Peninsula interests in Trinidad after striking a deal with Beach Oilfield Limited.
The company had previously agreed to acquire all of BOLT’s interests in oil and gas leases, with rights to deep targets below 7,000 feet.
LGO said its title to 100% owned Cedros leases have now been accepted by the Ministry of Energy and Energy Affairs.
The Ministry is currently in the process of issuing a Petroleum Rights License which covers and area of 3,850acres.
It comes after LGO agreed in November last year to pay a total of $400,000 to BOLT in part payments of the $2.5million agreed in 2013 for the purchase of rights below 7,000feet in the leases
owned or to be obtained by BOLT.
LGO has agreed to pay a further $200,000 to BOLT in part payments of the remaining consideration of $2.1million.
It means the final payment due at closing under agreement will be reduced to $1.9million.
In the heads of agreement, which were announced almost two years ago, LGO and BOLT agreed to work together to cross-assign their various interests to explore deep horizons below 7,000feet.
Last year, a surface geochemistry sampling survey was jointly conducted by the parties.
Neil Ritson, chief executive of LGO, said: “We are now making excellent progress in bringing together the licensing and the technical work in the Cedros so that we can begin drilling in 2016 and beyond.
“Early indications from our geochemistry and airborne gravity surveys completed recently are that we may well have multiple prospects from which to choose the first well target.”
