LGO.L Share News (LGO)

LONDON (Alliance News) - LGO Energy PLC on Thursday said work is ongoing on the re-completion of wells at the Goudron field in Trinidad.

LGO said well GY-50 was completed this week and will now be on test production to establish initial conditions before being equipped with a downhole pump. The pumped oil rate from the well is anticipated to be 50-100 barrels per day and will support the work LGO is doing to bring on low cost new production.

LGO also said GY-671, recompleted in late April, has continued to produce oil and was recently converted to pumped production to determine if lower pressure drawdown will lead to better long-term production characteristics.

A five further target wells have been selected for re-completion, LGO said.

Production in the first quarter of 2016 for LGO averaged 574 barrels of oil per day, the company said. A total of 52,250 barrels were produced from its Trinidad assets, with 39,383 barrels from its Spanish assets.

"A programme of low cost well interventions is being pursued at Goudron Field to raise production levels gradually after a period of enforced low activity whilst the company's finances were put in order following the loss of well GY-678 in late 2015. Once capital becomes available the company anticipates the drilling of infill wells in the shallow Mayaro Sandstone where there are a large number of low cost new wells that can be added to the field using the company-owned heavy work-over rig," said Chief Executive Neil Ritson.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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