Trinidad-focused Leni Gas and Oil (LGO) has entered an agreement with Italian energy firm Pansoinco in a bid to further develop its assets in Northern Spain.
The heads of terms cover a transfer of 65% shares in Leni Investments CPS – Leni’s Spanish subsidiary – to Pansoinco for an initial payment of $2.8million (£1.7million), subject to final due diligence.
The Italian company would take on the operatorship of Leni’s Spanish assets, as well as development costs involved, until January 31, 2017.
Leni is hoping to extend the partnership beyond 2020 to ensure substantial investment in its producing Ayoluengo and Hontomin fields.
“A partnership with Pansoinco will bring the necessary experience and resources required to fully optimise the value of Spain for both parties,” said Neil Ritson, Leni Oil & Gas chief executive.
“As a result of this agreement LGO’s anticipated next 3 years’ Spanish cash flow will immediately be brought forward and will allow the company to put these funds to work increasing our Trinidad oil production.”