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LGO Energy cash runs dry after drilling misshap

Mon, 19th Oct 2015 09:11

(ShareCast News) - After a costly drilling accident, oil explorer LGO Energy has been prevented from accessing more cash from its bank facility as it has breached its covenants.The AIM-listed company last month reported that well GY-678 in the Goudron Field offshore Trinidad, the last of seven development wells to be drilled, had suffered a mechanical problem, where an obstruction at approximately 1,800 feet prevented the well from being completed.After failed attempts to recover the downhole equipment which was causing an obstruction, LGO, which earlier this month raised £1m towards planning for the related Goudron sandstone project, was forced to plug the hole with cement to release the oil rig.Management will make a decision on possible re-entry and sidetracking, or re-drilling the well in order to reach what was found to be an exceptionally thick net oil pay zone previously drilled and logged in the well.But in the meantime, the incident has already cost LGO $1.9m from the unsuccessful recovery attempts and it will potentially be liable for a further $1.5m from the cost of the lost downhole equipment, with an even greater loss from the missed oil production from the extensive oil pay."The loss of anticipated production from this well has had a negative impact on the group's cash flow forecasts to the extent that the liquidity ratios as specified in the group's banking arrangements with BNP Paribas have dropped below those originally envisaged in the covenants associated with the loan," the company said."The company is currently reviewing various options in constructive discussions with the bank, however, in the meantime the bank have indicated that no further amounts can be drawn against the facility."Chief executive Neil Ritson assured that the issue was a short-term one and expected the company's cash flow to be improved in the coming months once production begins from the Goudron Sandstone activity."Stuck pipe incidents are not common and despite taking extensive precautions during the drilling of the 15 new wells, this incident, which occurred at the very end of the program, is a setback for LGO," he admitted."Whilst there is no long term impact to the company's assets and indeed the GY-678 well has shown that there is more and better C-sand reservoir than previously known, the short-term financial impact has to be managed."

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13 Feb 2017 09:48

LGO clearing trees ahead of Goudron drilling

(ShareCast News) - LGO Energy confirmed on Monday that final approval was granted by the Trinidadian Forestry Department on 10 February to cut trees in order to clear the well sites for the impending two shallow infill wells at the Goudron Field in the east of the country. The AIM-traded firm said s

9 Feb 2017 13:13

LGO Energy reapplies to Spanish government for oil concession

(ShareCast News) - Oil and gas firm LGO Energy has reapplied to the Spanish government to extend its concession in the country, after it was denied an extension in January. The La Lora concession, which has a carried value of £7m and is owned by the the company's subsidiary, Compañía Petrolífera de

30 Jan 2017 13:25

LGO Energy to re-apply for extension of Spain oil concession

(ShareCast News) - LGO Energy is "disappointed" on learning the Spanish government has not approved the extension of its concession in the country and the oil and gas firm is looking to reapply. The AIM-listed company maintained that the pending the extension decision, and along with present oil pr

24 Jan 2017 16:06

LGO Energy busy in Trinidad

(ShareCast News) - LGO Energy provided an operational update on Tuesday, including plans for production drilling and enhanced oil recovery at the Goudron Field in Trinidad, its Trinidad South West Peninsula interests and group production for the fourth quarter 2016. The AIM-traded company said that

21 Dec 2016 13:50

LGO Energy looking at busy year of operations

(ShareCast News) - LGO Energy updated the market on its corporate plans for the first quarter of 2017 on Wednesday, saying its recent loan refinancing and equity placement positioned the company for an early return to drilling in the Goudron Field. The AIM-traded firm said that would happen with the

21 Dec 2016 10:19

Revitalised LGO Energy Eyes Drilling At Goudron Field In Early 2017

13 Dec 2016 09:23

LGO Raises Funds For Goudron Field By Issuing Shares At Discount (ALLISS)

13 Dec 2016 07:57

LGO energy raises £1.18m to accelerate drilling program at Trinidad wells

(ShareCast News) - AIM-listed oil and gas explorer LGO Energy has raised £1.18m in equity to accelerate the drilling of its sandstone wells in Trinidad. The company will use the £1.funds raised to hasten the drilling of the Mayaro sandstone infill wells at its Goudron Field in Trinidad, and for use

12 Dec 2016 14:26

LGO Energy looking ot restart drilling at Goudron

(ShareCast News) - LGO Energy updated the market on its plans to recommence production drilling at the Goudron Field in Trinidad on Monday, following its announcements on 7 and 9 December confirming the refinancing of the company's loan facility. The AIM-traded firm's local operating subsidiary, Gou

9 Dec 2016 14:28

LGO Energy completes refinancing

(ShareCast News) - LGO Energy confirmed on Friday that, as announced on 7 December, its refinancing had now completed. The AIM-traded company said first close on the transaction agreed with the Lind Partners occurred on Friday. "LGO received the proceeds from the first drawdown of $1.825m on the Li

7 Dec 2016 18:09

LGO Energy Shareholder Sells Up As Funding Deal Sends Shares Soaring

7 Dec 2016 10:31

WINNERS & LOSERS SUMMARY: WPP Hit By Report Of US Justice Probe Of Ads

7 Dec 2016 09:27

LGO Energy Agrees New Funding To Repay Defaulted Bank Facility

7 Dec 2016 09:24

LGO Energy secures funding for drilling project

(ShareCast News) - LGO Energy, AIM listed oil and gas exploration company, has announced that it has secured a new $8.6m convertible security funding agreement to pay back its debt and restart its development drilling program at its Goudron Field. The first drawdown of the $1.8m on the funding agree

29 Nov 2016 11:13

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LGO.L Share News (LGO)

LGO Energy cash runs dry after drilling misshap

LGO clearing trees ahead of Goudron drilling

LGO Energy reapplies to Spanish government for oil concession

LGO Energy to re-apply for extension of Spain oil concession

LGO Energy busy in Trinidad

LGO Energy looking at busy year of operations

Revitalised LGO Energy Eyes Drilling At Goudron Field In Early 2017

LGO Raises Funds For Goudron Field By Issuing Shares At Discount (ALLISS)

LGO energy raises £1.18m to accelerate drilling program at Trinidad wells

LGO Energy looking ot restart drilling at Goudron

LGO Energy completes refinancing

LGO Energy Shareholder Sells Up As Funding Deal Sends Shares Soaring

WINNERS & LOSERS SUMMARY: WPP Hit By Report Of US Justice Probe Of Ads

LGO Energy Agrees New Funding To Repay Defaulted Bank Facility

LGO Energy secures funding for drilling project

LGO Energy Agrees Sale Of 11,200 Barrels Of Oil In Spain

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