Leni Gas & Oil says that yesterday at 1600 hours GMT+1 the Hontomin 2 well in northern on-shore Spain encountered oil at 1350m with oil flowing to surface.

The objective of the Hontomin extended well test program is to appraise the long-term production potential of the Hontomin-2 well.

Drilling of the top reservoir formation interval has been completed and light oil has been observed flowing to surface. Full monitoring of the well will be conducted during the next few days prior to recommencement of drilling to open the bottom reservoir formation interval.

All well production from Hontomin will be transported to the central production facilities at the Ayoluengo operations base for processing and oil sales.

David Lenigas, Chairman of LGO stated, "This is an extremely important development for the Company, and oil flowing to surface is an encouraging sign for this well."

"Spain is one of the Company's most important assets and there is a great deal of new work being done between here and the end of the year on the various fields to enhance overall production as a direct result of the extensive reworking of the database this year."

Tags: Leni Gas & Oil Plc