18th Jul 2016 07:58
LONDON (Alliance News) - LGO Energy PLC shares rose on Monday after the latest review of the company's resources revealed a 21% lift in the estimated amount of oil-in-place within the flagship Goudron field in Trinidad.
LGO shares were trading up 5.9% to 0.318 pence per share on Monday following the announcement.
The oil and gas company said the independent estimates have led to increases in the volume of all reserve categories, proven, probable and possible, and the estimated oil-in-place is now 21% higher than the independent review estimate carried out last year.
"This latest resource report confirms the very significant potential of the Goudron field, with resource volumes increased in all areas from those reported in the 2015 assessment. The company is working hard to continue development of the Field and the planning for a campaign of cost-effective wells targeted at the shallow Mayaro sandstone reservoir is already well advanced," said Chief Executive Neil Ritson.
The estimated oil-in-place now stands at 975.0 million barrels compared to the 805.0 million barrel estimate in 2015.
Gross proven reserves, the highest category of classification, has risen 22% from the previous estimate to 1.6 million barrels. Gross proven and probable reserves are now estimated to total 11.8 million barrels of oil, 4.0% higher than the estimate in 2015.
Those proven reserves have risen substantially even after the 240,000 barrels that were produced between the publication of the old and new reports was taken into account.
Proven, probable and possible reserves are now estimated to be around 25.6 million barrels of oil, around 9.0% higher than the previous estimate published in mid-2015.
Importantly, those estimates are all gross figures. On a net basis lying within the Goudron field, LGO has proven reserves of 1.3 million barrels; proven plus probable reserves of 10.3 million barrels; and proven, probable and possible reserves of 22.4 million barrels.
By Joshua Warner; [email protected]; @JoshAlliance
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