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Leni Gas and Oil to divest Hungarian interests

Oil and gas explorer Leni Gas and Oil has decided to divest its Hungarian assets, the energy website reported.

The company considers the investments in the ZalaGasCo and PetroHungária ventures as non-core after a review of reserves and resources, the website said. The oil and gas explorer Leni Gas and Oil acquired a 14.54% stake in ZalaGasCo Kft and 7.27% of PetroHungária Kft from Ascent Resources for €2 million in cash in the spring of 2008, earlier Econews information shows.

The advisers Equipoise and Eclipse Petroleum Technology have assessed both investments in detail and concluded neither venture will provide a material return on Leni's Hungary investment. The company has therefore decided to relinquish its interest in both ZalaGasCo and PetroHungária, and write off the Hungary investment, the website reported.

PetroHungária holds a 100% interest in a gas development project in eastern Hungary, and ZalaGasCo owns 50% of a gasfield redevelopment project in western Hungary. (MTI – Econews)