11th Jul 2014 09:27
LONDON (Alliance News) - Leni Gas & Oil PLC Friday said it has started drilling the GY-667 well, which is the fourth of its planned development wells at the Goudron field in Trinidad.
The oil and gas exploration and development company said the well has a planned depth of 3,600 feet and its primary target is the Gros Morne sandstones formation, the top of which is expected to be met at 2,180 feet.
The company said the well also will investigate the reservoir potential of the Lower Cruse region and is currently drilling in Goudron sandstones.
Leni Gas & Oil also said final approvals has been received and construction contracts have been awarded for a new 2,000 barrel sales tank at Goudron. The tank increases total daily export capacity to roughly 2,750 barrels of oil per day.
It added that negotiations for a second drill rig at the site are being actively progressed, and it plans to hold the Well Services Rig 20 for at least a further six wells.
The news comes after a string of positive developments at the Goudron field, with oil finds in its first three development wells and its first well reaching a stabilised production rate of 240 barrels of oil per day in early June.
"The 30 well drilling campaign continues to advance extremely well, and we are making considerable progress in learning about the geology and drilling characteristics of the field," Chief Executive Neil Ritson said in a statement. "That knowledge is being used to optimize the development, and we anticipate both cost and timing efficiencies will continue to be made through the remainder of the program."
Leni Gas & Oil shares were down 2.9% to 3.52 pence on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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