1st May 2014 09:15
LONDON (Alliance News) - Leni Gas & Oil PLC saw its shares rise Thursday after it said its first development well at its Goudron field in Trinidad had struck oil.
The company only started drilling the well this week, and said it had already encountered oil between 571 feet and the current well depth of 1,100 feet, with combined pay intervals so far of approximately 193 feet in the upper Goudron Sands.
"The presence of oil bearing Goudron Sands, whilst expected at this location, is very encouraging and the production potential of an interval of this thickness is already well established," Chief Executive Neil Ritson said in a statement. "This is an excellent start as we begin to unlock the 122 million barrels of proven and probable oil still in the field."
The company said it will continue drilling in the remaining Goudron sands, estimated to be 400 feet thick, to the first casing point at approximately 1,540 feet, where electric logs will be run. Drilling will then continue test the primary objectives in the Gros Morne and the Lower Cruse sands at depths below 2,800 feet.
Leni Gas & Oil shares were up 10.5% at 1.00 pence Thursday morning, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @stevemcgrath1
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