Leni Gas and Oil (LGO) is to buy Tabaquite from Trinity Exploration & Production for $2million, it was confirmed today.
Tabaquite is due to receive a license for the Tabaquite Block in Trinidad, the most northerly onshore producing block in the area.
Production from the existing license is 25 barrels of oil per day with LGO claiming to have identified 30 well targets in the area.
Neil Ritson, chief executive, said: “We are delighted to add the Tabaquite Block to our portfolio in Trinidad. The Tabaquite Fields represent excellent candidates for reactivation and whilst the fields have become non-core to Trinity, LGO’s proven ability to reactivate oil fields and successfully drill infill wells makes this acquisition a natural extension of our asset base in Trinidad.
“Operations to reactivate wells could commence as early as January 2015 and the drilling on new infill wells later that year.”
LGO shares were up 4.0% to 4.18 pence on Wednesday, while Trinity shares were up 2.8% to 46.00 pence.