Further to the company's announcement on 4 November, a commitment has now been received from a Spanish buyer for LGO's local subsidiary, Compañia Petrolifera de Sedano (CPS), to deliver a total of 11 200 bbls of Ayoluengo crude oil in December 2016 and January 2017. The oil has been sold at a price competitive with local fuel oil, and the funds generated will be used in CPS operations and general corporate working capital.
In separate news from the Ayoluengo Field, the CPS-owned workover rig has recently undergone a two yearly mechanical recertification and has now been returned to service.
Neil Ritson, LGO's Chief Executive, commented:
"We are happy to have concluded the sale of accumulated surplus stocks of oil built up at the Ayoluengo field over 2016. Whilst the company is still awaiting a final decision from the Spanish government on CPS's application for a 10 year concession renewal from 1 February 2017 we are continuing with normal operations and preparing for various contingencies, including potentially applying for a new 30-year concession should the Company consider that to be advantageous."
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29112016/lgo-announces-sale-of-oil-in-spain/