LONDON (Alliance News) - Leni Gas & Oil PLC Monday said its GY-664 well in the Goudron Field, Trinidad, was brought into production on Friday and has now stabilised at a strong rate of 240 barrels of oil per day, while drilling at its GY-665 well has already found a region of oil-bearing sand.
The oil and gas exploration and development company said the site represents the first new production well on the field for over 30 years and, using new drilling techniques, it has achieved a stabilised rate four-times above production assumptions of 60 barrels of oil per day based on historical data from the field.
The company said the well, which before being stabilised flowed at an initial rate of 326 barrels of oil per day, is now flowing under its own pressure through a 7/32-inch choke at a wellhead pressure of 660 per square inch, without any water or sand production.
"This is a very significant outcome and I am sure it will be completely transformational for the field and the company," Chief Executive Neil Ritson said in a statement. "We fully expect many more similar results as the drilling campaign progresses and indeed well GY-665 is already showing considerable potential."
Leni Gas & Oil also announced that its second development well at the site, GY-665, has now drilled to 1,606 feet on its way to a total depth of 3,500 feet, and it has already intersected a 310 feet region of gross oil sand in the Goudron sandstones formation of the site.
The company said that once casing has been set at the GY-665 site, it will continue drilling to its primary target in the Gros Morne sandstone region.
Leni Gas & Oil shares were up 31% to 1.95 pence, putting it in the top-five AIM ALL-Share risers in early trading on Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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