(An item published at 0936 GMT misstated the year that the three wells from Pad 3 are set to be completed due to an error by the issuer. The correct version follows.)
LONDON (Alliance News) - LGO Energy PLC Tuesday said the drilling of the Sandstone well at the Goudron field in Trinidad could be deferred until 2015 after results from another well showed that the planned site for the Sandstone well was not ideal, while it is going to deepen another well that's currently being drilled to test more targets.
In a statement, the company said it had finished analysing the results of the sixth new well at Goudron, GY-669, and a minor re-evaluation of the fault configuration has led to the conclusion that the previously planned Goudron Sandstone well, anticipated to be the fourth from Pad 3, is not ideally situated and the drilling of that well may be deferred until 2015.
"Three wells from Pad 3, all targeting the Gros Morne (C-sands), will be drilled and completed by end 2014," the company said in a statement.
LGO also said well GY-670, the seventh of its planned 30 new development wells at the Goudron field, is drilling ahead in the Gros Morne Sandstones at a depth of approximately 2,750 feet measured depth. A total of 206 feet of net oil pay were identified on electric logs in the Goudron Sandstone formation, it said.
The GY-670 well was originally planned to test the Goudron and Gros Morne Sandstone reservoirs to a total depth of at least the equivalent to 3,305 feet measured depth. LDO said that following analysis of the GY-669 results, it has decided to deepen the well to drill the entire high pressure Lower Cruse section and to reach the pre-Cruse at a new estimated measured depth of 4,250 feet.
The oil and gas explorer also said optimisation of production from Pad 2 is awaiting approval to recomplete well GY-667 in the more extensive and productive Gros Morne reservoir which was recorded to have 219 feet of net oil pay from electric logging. That approval is now thought to be imminent and recompletion will start immediately after it is received.
"The development drilling has continued to produce results in line with or ahead of expectations and GY-670 is progressing to plan and will be deepened to intersect with all likely oil bearing reservoirs. Once GY-670 reaches TD the third and final Gros Morne well on Pad 3, GY-671, will be drilled and then it is expected to complete all three wells as producers by end year. This will lead to a further significant increase in production as we go into 2015," Chief Executive Neil Ritson said in a statement.
LGO Energy shares were down 2.5% at 4.32 pence Tuesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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