Leni Spanish Asset Sale Delayed

The sale of Leni Gas & Oil's (LGO's) Spanish assets has been slightly delayed, Leni has announced today, following a banking delay on the side of the buyer.

The sale of the assets, which was due to be completed on the 27th of July, has been agreed at a cost of €8 million, secured with a €200,000 non-refundable cash deposit. However, due to a "minor technicality" with the buyer's banking arrangement, Leni says, the completion of the deal has been delayed. 

During the delay, the buyer has agreed to pay a late completion surcharge, as per the deal which was signed on the 18th of July, of €50,000 daily until the 31st of August. Should the technicality not be fixed by the 31st of August, the sale and purchase agreement will be automatically terminated. However, a statement from Leni today says the company is confident that completion of the sale will take place "shortly".

Leni announced last month that it had entered into the sale, which includes the La Lora Production Concession and the Basconcillo, Huermerces and Valderredibles Exploration Licences in Northern Spain, to focus its attention on its Trinidad assets. The assets are held through Leni subisidiary Compania Petrolifera de Sedano S.L. (CPS).