LONDON (Alliance News) - LGO Energy PLC on Wednesday said drilling work on the Mayaro area of the Goudron field in Trinidad & Tobago will get underway as soon as is practicable in the new year.
LGO said the refinancing of its loan obligations it completed earlier this month and the subsequent equity fundraising it undertook have left it well positioned for an early return to drilling work at Goudron in 2017.
It said the initial programme on Mayaro will kick off in early 2017, followed by further drilling to the Mayaro Sandstone oil pay.
Goudron E&P Ltd, LGO subsidiary running the Goudron field, anticipates submitting a formal application for a waterflood enhanced recovery project to the relevant authorities in Trinidad early in 2017, with a view to starting the initial phase of the waterflood project in late 2017.
"After a difficult period with low oil prices and a senior debt facility that was difficult to service effectively from field operations, which themselves were constrained by limited available funds, we can now look forward to the imminent return to development drilling and the deployment of capital to increase production at the company's flagship Goudron field," said Neil Ritson, LGO's chief executive.
LGO shares were up 0.6% to 0.109 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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