Leni Gas & Oil (LON:LGO) chief Neil Ritson says he is “very enthusiastic” about the potential of the Cedros Peninsula, in Trinidad, as the company updated on it proposed joint venture with Beach Oilfield (BOLT).
The AIM quoted firm, which operates the producing Goudron field in Trinidad, told investors that payments to BOLT under the ‘data agreement’ have now been completed, and geochemical field work has now begun.
The final definitive farm-in agreement is still being finalised, Leni said, as title due diligence has taken longer than expected.
“We are very enthusiastic about the oil potential of the Cedros Peninsula and have now completed an initial review of the data we acquired from BOLT,” Ritson said.
“In LGO's technical view there is undoubtedly significant untested potential in proven reservoirs and in a structural style that is simpler than much of onshore Trinidad relating more closely to the prolific East Venezuelan Basin.
“As new data is collected and integrated with the existing data that we have acquired from BOLT it is anticipated that a number of potentially large drillable prospects will be mapped."
Meanwhile, Barney Gray, analyst at City broker Old Park Lane Capital, said: “LGO believes that there is exciting untested potential in the proven reservoirs of the Cedros Peninsula.
“In particular, the company is confident that the structural style is simpler than much of onshore Trinidad and relates more closely to the prolific East Venezuelan Basin.”