LONDON (Alliance News) - LGO Energy PLC Thursday said it has started drilling the GY-672 well on the Goudron field in Trinidad, which has confirmed the presence of recoverable oil.
The company said it began drilling the well on April 15, and log interpretation from both the Goudron and C-sand intervals confirms the presence of recoverable hydrocarbons; the net pay in the Goudron Sandstone is estimated to be 336 feet and in the C-sand main target is estimated at 160 feet.
The GY-672 well is the first of seven wells to be drilled on the field in 2015, and LGO said the "observed net pay is in line with the prognosis for this well". GY-672 was drilled, logged and cased for future production in under 15 days, some 10 days less than any well in the eight well drilling program carried out 2014.
Well Services Petroleum Co Ltd's Rig-70 is in the process of being moved to the next of the current planned wells, GY-673, which will be drilled to a total depth of 3,550 feet and targeting the C-sand interval.
"Our first well for 2015 has been drilled in record time and on prognosis geologically, discovering oil in the Goudron and C-sand sections as expected. We anticipate completing the well as a C-sand producer in June along with the two other wells yet to be drilled from this surface location. The next well, GY-673, will be spudded imminently," said Chief Executive Neil Ritson.
In addition, the first well re-completion on the Goudron field has been finished, the first of twelve, and the well is now on pump production and is currently cleaning up. Further wells will be re-completed during May and these re-completions are expected to provide additional production at low cost.
In the first quarter of 2015, production remain on restricted chokes which constrained oil production to 1,550 barrels oil per day. LGO said production should rise to 2,000 barrels of oil per day once the wells that are currently being drilled are completed.
LGO shares were down 6.4% to 2.41 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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