LGO today made further progress on its Cedros Peninsula interests where it has entered into a further agreement with Beach Oilfield Ltd (BOLT) to acquire all of BOLT's interests in oil and gas leases with rights to deep targets below 7,000 feet. The agreement dictates that LGO will pay BOLT US$2.5 million for the rights. In November 2014, LGO paid US$400,000 to BOLT and today LGO has agreed to pay a further US$200,000, with the remaining amount due at US$1.9 million. In this regard, LGO will issue 3.89 million LGO shares at 3.30 pence a share to BOLT as consideration for the payment.
In furtherance to that, LGO's title to its 100% owned Cedros leases have now been accepted by the Ministry of Energy and Energy Affairs who are in the process of issuing a Petroleum Rights Licence for the leases which cover approximately 3.850 acres.
According to LGO's CEO, Neil Ritson, the indications form the geochemistry and airborne gravity surveys have shown multiple prospects from which LGO can choose its first well target and drilling could take place 2016 and beyond.
For those who are unacquainted with the Cedros Peninsula please revisit my post in April 2015: Why the Cedros Peninusla is such a big deal to LGO.
My disclosure: I am long LGO
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