LGO Finds Goudron Oil
Monday 13 March 2017
London-listed LGO Energy has hit oil after drilling the first development well of the new planned programme at the onshore Goudron field in Trinidad.
The GY-682 reached total depth at 1145 feet, LGO said on Monday. "Electric log interpretation of the Mayaro Sandstone target interval confirms the presence of oil over an estimated net reservoir thickness of 408 feet," the company said.
"The well will shortly be put on production with a downhole pump and a stabilised production rate will be established, at which point the company expects to announce the average initial flow rate," it said.
GY-682 is one of a programme of planned Mayaro infill wells, each of which is forecast to have average initial production rates of 45 barrels of oil per day of light sweet crude, with low decline rates.
"The first well has been a success. Production will start shortly, adding to our production base and the rig will move to the next well site. After months of restructuring, we now have momentum back in the business," chief executive Neil Ritson said.
The next well, GY-683, in the shallow infill programme will be spudded shortly. Three additional wells have been now approved as part of the ongoing development in which 45 wells have already received environmental approvals, according to LGO.
The company said it has 11.8 million barrels of proven and probable reserves in the Goudron field.
LGO’s shares were up 6.52% early on Monday in London.