LONDON (Alliance News) - LGO Energy PLC Monday said it is starting to increase investment into its producing Goudron field in Trinidad in an attempt to increase production by around 200 barrels each day.
The decision follows on from the company's commitment to begin investing funds in the field once oil prices began to stabilise.
LGO's local subsidiary, Goudron E&P Ltd, has the Altech Rig 2 currently carrying out a programme over the next "two to three weeks" to restore production from a number of existing wells on the field in an attempt to boost daily production by around 100 barrels.
Once completed, LGO plans on completing several well re-completions in an attempt to boost production by a further 100 barrels of oil per day. The company said that will take around three weeks to prepare as it sources the necessary approvals and equipment.
During that second programme, the company plans to target the upper C-sand interval of 180-feet of net pay that was previously not perforated in well GY-671 followed by the 100-foot interval of Goudron sandstone net oil pay in legacy well GY-50 which was not previously opened for production.
The work on those two wells will cost around USD75,000 each and will be funded from existing cash balances provided by LGO's wholly-owned service company based in Trinidad, Columbus Energy Services Ltd.
"The two proposed well recompletions offer the greatest potential return on investment of the immediate options identified. Further heavy workovers and recompletions are being planned based on availability of further funding," said the company.
LGO added it has the option to mobilise the Altech Rig 1 if it needs extra drilling capacity.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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