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Since Leni Gas & Oil Plc (“Leni”) took over operatorship of the Ayoluengo field, the primary effort has been the successful increase of production from the field to 130 bopd and a basin wide reinterpretation of the nearby licences in which Northern has a royalty interest. This work has identified prospective and contingent resources of 12.8 million boe.
Leni has now received all regulatory permits and approvals to commence its planned extended well test on the Hontomin-2 well, with the objective being to appraise the long term production potential of the well and determine the optimum exploitation plan for the Hontomin field, which they currently envisage to be the maximisation of production by a side-track of Hontomin-2 in the second quarter of 2010. The Hontomin structure is considered by Leni to have mean oil in place of 2.4 million barrels and the recovery target is 1 million barrels. Northern holds a 1.25% over-riding royalty from any future production on the three exploration licences that contain the Hontomin and other discoveries. Therefore any operational activities conducted by Leni will not call upon Northern’s financial and human resources.
Further information
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