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New Articles

Saturday, 30 August, 2008, 11:20 GMT | more prices >>

Leni begins Maltese adventure

By Upstream staff

UK-listed Leni Gas & Oil said today it had signed a farm-in agreement with Malta’s Mediterranean Oil & Gas to take a 20% interest in four exploration blocks off Malta.

The blocks, known as Area 4, cover an area of more than 5000 square kilometres between Malta and Libya in water depths of around 400 metres, Leni said.

Under the terms of the agreement, Leni will earn its stake in Area 4 by contributing to the of acquiring about 3000 kilometres of 2D seismic and a detailed 3D seismic programme.

Leni has an obligation to fund an initial $1.5 million of the exploration study costs and thereafter fund a further $3.5 million.

In the event that a production sharing contract is granted, Leni will also have the right to fund 80% of the first exploration well costs to increase its stake in Area 4 to 50%.