• Largest Spanish onshore oilfield with mean STOIIP of 104 mmbbls

• Historical production of 17 mmbbls (only 17% recovery), 37 API oil

• Current production of 130 bopd and rising through improved well
   productivity programs

• Major secondary recovery program initiated to increase recovery
   to ~30%, lift production above 1,000 bpd and identify in-fill drilling targets
 

• Combined acreage of 556 sq.kms with numerous undeveloped 
   oil and gas discoveries

• Contingent and prospective resources of mean 13mmboe reserves

• Major re-interpretation underway to qualify prospects

Ayoluengo oil field (93-104-116 mmbo STOIIP, P90-50-10) has only recovered 17mmbo to date (low recovery factor, ~17%), with wells producing dry oil (37deg API) and reservoir lacking pressure to sustain higher production.  No proven enhanced oil recovery methods have been used to energise the reservoir, such as water flood despite successful trials by Repsol. Similarly no modern geological re-interpretation was conducted on the field to identify enhancement opportunities until recently by LGO.

Production facilities originally designed by Chevron to handle 10mbpd are maintained in-place.

Investment by LGO since acquisition has raised production and a variety of proven recovery methods are identified (water injection, re-perforations, well stimulation, in-fill drilling) to recover several mmbo incremental reserves and realise a 30% field recovery factor.  The field also has long term gas storage potential (~15 bcf net usable) post oil depletion.

Several developments identified in the halo exploration permits (LGO  85%) after completion of a basin wide re-interpretation to identify high potential prospects.  Total halo prospective and contingent resources identified of 12.8 mmboe.

A full field seismic and well re-interpretation identified recoverable reserves in four reservoir sands with 60% identified in the primary Ayoluengo (P90, P50, P10: 2.5, 4.0, 5.8 mmbo) and Sargentes sands (P90, P50, P10: 4.5, 5.4, 6.3 mmbo).  This re-interpretation has identified water injection as the primary recovery means in the continuous Ayoluengo sands and stimulation and in-fill drilling in the less continuous Sargentes sands