LONDON (Alliance News) - LGO Energy PLC on Thursday said production has now commenced from a new oil pay interval in well GY-673 at the Goudron field in Trinidad.
LGO said the interval in the shallow Mayaro sandstone formation did not flow naturally, as anticipated, leading it to be placed on pump production. The well is still cleaning up and is currently producing oil with an API gravity of 36 degree rate of 30 barrels per day.
LGO added that its earlier wells in the programme, GY-671 and GY-50, continue to produce dry oil with 39 and 36 degree API gravity, respectively. The wells have both been on stable pumped production for the last month and are contributing approximately 10% of the field's current production output.
Meanwhile, LGO's subsidiary Goudron E&P Ltd continues to review available options for low-cost recompletions and a further six target wells have now been selected. These wells are considered to have additional productive intervals that have so far not been produced.
LGO said its second-quarter production remains broadly unchanged compared to the first quarter.
"The previously announced programme of low-cost well interventions is being pursued at the Goudron field to maintain production levels during a period of lower activity. As previously announced LGO is now well advanced with planning for drilling of a series of infill wells in the shallow Mayaro sandstone, which is seen as a logical step in the ongoing development of the 975 million barrels of oil in place recently audited by Deloitte in their 2016 reserves report," Chief Executive Neil Ritson said in a statement.
Shares in LGO were trading down 1.3% at 0.180 pence on Thursday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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