17th Jun 2014 10:21
LONDON (Alliance News) - Leni Gas & Oil PLC Tuesday said the third of its development wells at the Goudron field in Trinidad was successfully started on Monday and is now being drilled, and it is expecting higher output than it achieved in the first of the redevelopment wells it drilled at the site.
Just last week, the company said the second development well at the site, GY-665, found oil, and it was expecting similar results from the third well, GY-666. The first well, GY-664, was completed last month and stabilised production at a strong rate of 240 barrels of oil per day in early June, after an initial flow rate of 326 barrels of oil per day. Leni Gas & Oil is planning 30 new development wells in total.
As with the previous two wells, the third well in the redevelopment program is intended to test the Goudron, Gros Morne and Lower Cruse sandstones, all of which are known to be productive for oil in offset wells, Leni Gas & Oil said in a statement Tuesday.
Well GY-666 has a planned total depth of 3,700 feet true-vertical depth, equivalent to 3,820 feet measured depth, to a bottom-hole location that is approximately 900 feet south-west of the surface. The primary target of this well is the Gros Morne sandstones, the top of which are anticipated at a depth of approximately 2,100 feet true-vertical depth, it said.
The second well, GY-665, will be completed as a Gros Morne producer once the rig is demobilized from the well pad, the company said. The reservoir pressure recorded at the Gros Morne in GY-665 is higher than that observed in GY-664, and this is likely to lead to improved production potential, it predicted.
"Reservoir pressures on the south side of the fault between GY-664 and GY-665 are higher and, given the similar quality of net oil pay, this is a very positive sign for the ultimate production potential of the four wells being drilled from the current well pad," Chief Executive Neil Ritson said in a statement.
Leni Gas & Oil shares were 4.7% at 3.22 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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