Leni Gas & Oil PLC Signs Partnership Agreement with Range Resources to Jointly Develop Interests in Eastern Fields Area Onshore Southern Trinidad
January 25, 2012 at 07:27 am EST
Leni Gas & Oil PLC announced the formation of a partnership with Range Resources Ltd. to jointly develop their interests in the Eastern Fields Area onshore southern Trinidad, including the Goudron and Beach Marcelle fields. In a binding heads of agreement, Range and LGO have agreed that, subject inter alia to full legal and technical due diligence. Range will acquire a 30% interest in Goudron E&P Limited in return for contributing USD 4 million at completion; For a further contribution of USD 4 million during the first 12 months following completion Range will increase their holding in GEPL to 50%; LGO will operate the Goudron field during the initial work-over phase, but subject to Range exercising its option to acquire a total of 50% in GEPL, Range will become operator during the infill drilling and water flood phases; Range will obtain an accelerated return through 75% of the revenue interest until their initial investment is recovered; LGO will have the option to acquire a 15% interest in the Beach Marcelle waterflood project by contributing 22.5% towards the development costs (paying a 50% promote), up to USD 7 million, towards the development costs; Range and LGO will work collaboratively to optimise and extend their joint interests in the Eastern Fields Area in Trinidad.