Leni Gas and Oil, which shares an oil exploration licence off Malta with Mediterranean Oil & Gas (MOG) said today that it remained focused on assessing the viability of non-seismic surveys and acquiring additional seismic data in an area south of Malta ahead of starting to drill an exploratory well next year.

In a statement to the London Stock Exchange, the company said its representatives and representgatives of MOG in June discussed the work programme progress for drilling preparations with the Resources Ministry.

The two companies have a commitment to drill by July 2011.

"Four prospects and five leads on the 5,700 square km PSC Area have been delineated, with the total most likely hydrocarbon potential of the PSC Area estimated at gross 5 billion barrels of oil in place with resultant total most likely case prospective recoverable oil resources of 1.475 mmbo gross," the company said.

LGO retains 10% in Area 4 Blocks 4, 5, 6 and 7 of Southern Offshore Malta, with Mediterranean Oil & Gas retaining the balance.

"Malta is the company's only non-producing asset though has company-maker potential with a billion barrel resources base. During the reporting period, the company and the joint venture operator continued to progress the pre-drilling work programme to improve the understanding of all drilling prospects. This work program continues to maximise the chance of success of the first Malta drilling target," Leni's chairman, David Lenigas said in his report.

Leni Gas and Oil plc has assets in Spain, US Gulf Coast, Trinidad and Malta. It made a gross profit of £227,000 in the six months to the end of June.

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