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22 May 2015 07:00
For Immediate Release, 7 am
22 May 2015
LGO ENERGY PLC
("LGO" or the "Company")
Goudron Drilling Update, Trinidad
LGO is today pleased to announce that well GY-673, which was spudded on 1 May 2014, has reached total depth and that well GY-674 has now been spudded and drilling ahead at over 166 feet. Electric log interpretation from both the Goudron and C-sand intervals in GY-673 confirms the presence of recoverable hydrocarbons; the net oil pay in the Goudron Sandstone is estimated to be over 650 feet and net hydrocarbon pay in the C-sand main target is estimated at 140 feet.
Drilling Operations:
Well GY-673 is the second of seven wells currently planned for 2015. The Goudron Sandstone was encountered between 530 and 1,710 feet measured depth ("MD") with an estimated net oil pay totaling 657 feet. The oil and gas bearing C-sand interval was encountered at a depth of 2,670 feet MD and the total depth ("TD") of the well was 3,193 feet MD. Net hydrocarbon bearing pay in the C-sand interval has been provisionally estimated as 140 feet. The observed net pay is in line with the prognosis for this well.
Well GY-674 is being drilled from the same drilling pad (Pad 4) and is planned to reach a total depth of 3,550 feet MD and is targeting a C-sand reservoir interval approximately 500 feet to the south of the surface location. The top Gros Morne sandstone reservoir (upper C-sand) is anticipated at 2,570 feet MD (2,350 feet TVD sub-sea). It is anticipated that additional data will be gathered in well GY-674, including the cutting of a 30-foot core in the C-sand reservoir, to assist in longer-term field development planning, and enhanced oil recovery.
Following the drilling of GY-674 Well Services Rig 70 will be moved to Pad 5 where it is expected that four further C-sand wells will be drilled.
Neil Ritson, LGO's Chief Executive, commented:
"Our 2015 drilling campaign is now in full swing and we are seeing results in line with our plans. First production from these three Pad 4 wells is now anticipated to be achieved in June. Additional drill pads for the drilling of further C-sand wells are now being prepared and additional environmental approvals are being sought that will allow the current 30 well program to be expanded to at least 60 wells."
Qualified Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for LGO Energy plc, who has over 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London.
Enquiries:
LGO Energy plc | +44 (0) 20 7440 0645 |
Neil Ritson Fergus Jenkins | |
Beaumont Cornish Limited | +44(0) 20 7628 3396 |
Nomad | |
Rosalind Hill Abrahams Roland Cornish | |
FirstEnergy Capital LLP | +44(0) 20 7448 0200 |
Joint Broker Jonathan Wright David van Erp
| |
Bell Pottinger | +44 (0) 20 3772 2500 |
Financial PR Henry Lerwill | |
Glossary:
C-sand | sandstone reservoirs below the pre-Mayaro unconformity and above the pre-Lower Cruse unconformity encompassing sandstones of equivalent age to both the Gros Morne and the Lower Cruse formations |
pay | a reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay |
MD | measured depth; the depth of a well measured along the length of the borehole |
TD | total depth |
TVD | true vertical depth; the depth of a well projected on to a vertical line below the surface location |
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