12th Aug 2015 07:42
LONDON (Alliance News) - LGO Energy PLC Wednesday said it intersected a net hydrocarbon pay of 130 feet from the C-Sand reservoir via its latest development well on the Goudron field in Trinidad.
The GY-677 well was drilled at the end of July and reached a total depth of 2,135 feet measured depth last Saturday. The well is the sixth of seven wells to be drilled on the field in 2015 and the third and final well on drilling pad five in the north-east of the field.
Production from pad five is expected to begin in late August, it said.
"The drilling at Goudron has continued to successfully discover productive C-sand reservoir and also confirm the ubiquitous presence of Goudron Sandstone oil pay. Drilling times have been shortened significantly which is important as we look to managing our capital efficiently in the presence of sustained low commodity prices," said Chief executive Neil Ritson.
GY-677 has now been capped for future production, and the rig is being moved back to drilling pad three where the final well for the current campaign, GY-678, is planned to be drilled to a total depth of 4,200 feet measured depth.
LGO's drilling programme in 2015 on the Goudron field has so far been successful, with all the wells encountering hydrocarbons. Once the last well has been drilled on pad three, the company will provide some form of production guidance for the field.
At the end of July, LGO said production stood at around 951 barrels of oil per day, but that excluded the latest three wells drilled on the field and the GY-677 well announced Wednesday.
Despite the news, LGO shares were down 2.3% to 1.64 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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