LGO Energy sells over 10,000 barrels of oil in Spain

29th Nov 2016 09:06

(ShareCast News) - Oil and gas company LGO Energy has sold over 10,000 barrels of surplus crude oil in Spain.The company's subsidiary Compañia Petrolifera de Sedano, is to deliver 11,200 barrels of surplus crude oil that was built up at the Ayoluengo oil field in December and January 2017 to a Spanish buyer.The oil was sold at a "price competitive with local fuel oil", and the company said it will use the funds generated for general corporate working capital.Chief executive Neil Ritson said: "Whilst the company is still awaiting a final decision from the Spanish government on Compañia Petrolifera de Sedano'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."The company also said that the Compañia Petrolifera de Sedano-owned rig in the Ayoluengo oil field, which had recently undergone a two yearly mechanical recertification, has now been returned to service.Shares in LGO Energy were down 3.37% to 0.108p at 0927 GMT.