LGO.L Share News (LGO)

(ShareCast News) - LGO Energy excitedly announced the start of production from a new interval in well GY-671 on the Goudron Field in Trinidad on Wednesday.The AIM-traded company had added a total of 208 feet of perforations to the Upper C-sand reservoir after setting a packer to isolate the zone. It had previously not been completed in any of the surrounding wells.After initial clean-up at rates of up to 240 barrels of oil per day, the well has been choked back and is producing a natural stabilised flow rate of 80 barrels of oil per day through a 6/32 inch choke, with a wellhead flowing pressure of 260 psi.LGO's board said the well was completed using tubing-conveyed perforating guns, and will now remain on production complementing the base level of production on the field, which has averaged 403 barrels of oil per day month-to-date."We are delighted to have located a number of low cost recompletions at a time when the Company remains capital constrained, but when oil prices have stabilized and we can take advantage of reduced overriding royalty rates granted recently," said chief executive Neil Ritson."Well GY-671 is the first of at least six candidate wells to be targeted to boost production and we are hopeful we will be able to report further significant improvements as a result of these operations."The next well is GY-50 which is expected to be completed next week over a 164-foot interval of previously unexploited net oil pay in the Goudron Sandstones," he explained.LGO Energy said group production figures for the first quarter are expected to be published in early May.The company was still facing banking and creditor issues, and said it was continuing to work on financing solutions to resolve these.