Leni Continues Discussions on Unconventional Gas Opportunity in Spain

Leni Gas & Oil has said that it continues maintains a dialogue with various interested parties in respect to potential unconventional gas exploration opportunities at its holding in Northern Spain.

Leni has identified unconventional gas prospectivity in the Lower Jurassic within the exploration and production acreage, which spans over 550 sq km in the Basque-Cantabrian basin. The company also has a number of outstanding exploration license applications.

In November 2010, Leni signed an agreement setting out the potential terms of an agreement to cooperate with that Sorgenia International B.V ("Sorgenia") and Rohöl-Aufsuchungs Aktiengesellschaft ("RAG") to assess a potential joint venture for the exploitation of unconventional gas opportunities in Spain.

The company is developing the Ayoluengo Field in Northern Spain.

Leni said that due to its unique position as the only active producer in the region, it is well placed to participate in future initiatives to test the potential for shale gas exploitation.