Leni Gas & Oil PLC

LGO have been increasing both its assets and investment in its interests in the Gulf of Mexico over the past four years. Production and revenue come from the Eugene Island-184 field and the Ship Shoals development.

The Eugene Island Field is located 50 miles offshore Louisiana in approximately 80 feet of water, and is operated by Marlin Energy LLP on behalf of the joint venture with Byron and LGO. The Ship Shoal development encompasses parts of blocks 197, 201 and 202 and is located 125 miles offshore Louisiana in approximately 100 feet of water. The South Marsh Island development lies in South Marsh Island block 8 and in Eugene Island block 177. That development is located 90 miles offshore Louisiana in approximately 60 feet of water, was initially developed by Chevron and produced from numerous sands from 10,000 to 15,000 feet.

LGO originally acquired its GOM interests through a 29% participation in Byron Energy LLC, a private E&P company, but has subsequently converted its interest in Byron into a 7.25% direct participating interest in the leases. Net revenue interests vary from block to block in the range 2.5 to 6.0%.

The Company also holds a number of options through a Strategic Scouting Agreement to acquire further interests in Marlin and Byron leases should development activities be undertaken.

Total 2010 production net to LGO’s interest was 6,617 bbls of oil and 37.8 mmscf of gas (12,913 boe). Additional potential exists at Eugene Island to recomplete existing wells or to sidetrack wells to undepleted zones. LGO and its partners are actively studying these options. Further development wells in a number of the leases are also possible and could give attractive rates of return on additional investment.