Source - RNS
RNS Number : 8525K
LGO Energy PLC
27 September 2016
 

For Immediate Release

 

                                                                                                                                                                            27 September 2015

 

 

LGO ENERGY PLC

("LGO" or the "Company")

 

Additional Recompletion Wells GY-668 and GY-288,

Goudron Field, Trinidad 

LGO is pleased to announce that stable production has now been established from a new oil pay interval in well GY-668, the fifth of its planned heavy work-overs at the Goudron Field in Trinidad, and that GY-288, the sixth well in the program has now been perforated.  A total of 89 feet of perforations were added to the Mayaro Sandstone, at depths between 1,265 and 1,385 feet, in GY-668 and a further 45 feet in GY-288 between 1,236 and 1,289 feet.  These reservoir intervals have not previously been completed for production.

As with earlier wells in the current workover program these wells were recompleted using wireline perforating guns and will be placed on downhole pumping.  The GY-668 well has been placed on pump production and after clean-up produced at a rate of approximately 15 barrels of oil per day ("bopd") of 36.6 degree API oil.  

The cost of the operations to recomplete GY-668 totalled US$40,000 and at current oil prices and anticipated flow rates based on a flow rate of 15 bopd pay-back will be achieved in under 3 months.  Additional low capital cost production is especially attractive since incremental operating costs for new production at Goudron are less than US$3 per barrel.

The oil gravity recorded from initial production in GY-288 yesterday was 32.7 degree API. The well is undergoing clean-up and is anticipated to produce approximately 15 bopd once stable production is achieved, which will lead to payback in between 2 and 3 months.

The Company plans to continue with the heavy work-over program and has selected wells GY-193 and GY-240 for work-over operations in the next 4 to 6 weeks.  Since announcing the heavy workover program aimed at increasing production at the Goudron Field in April 2016 a total of six wells have been recompleted.

Neil Ritson, LGO's Chief Executive, commented:

"As planned we are maintaining production output at Goudron through a carefully managed program of low cost, rapid payback, heavy work-overs prior to the anticipated drilling of new infill wells to the Mayaro Sandstone which it is hoped will commence before year end."

Qualified Person's Statement:  

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for LGO Energy plc, who has over 38 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London (BGS).

 

 

 

 

Enquiries:

LGO Energy plc

+44 (0) 203 794 9230

Neil Ritson


Fergus Jenkins




Beaumont Cornish Limited

+44 (0) 20 7628 3396

Nomad


Roland Cornish


Rosalind Hill Abrahams




FirstEnergy Capital LLP

+44 (0) 20 7448 0200

Joint Broker


Jonathan Wright


David van Erp




Bell Pottinger

+44 (0) 20 3772 2500

Financial PR


Henry Lerwill


 

Glossary:

API

American Institute of Petroleum

bopd

barrels of oil per day

Mayaro Sandstone

sandstone reservoirs above the pre-Mayaro unconformity, previously also referred to as the Goudron Sandstone

psi

pounds per square inch

US$

United States dollars

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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