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20 Apr 2016 07:00
For Immediate Release
20 April 2016
LGO ENERGY PLC
("LGO" or the "Company")
Goudron Operational Update
LGO Energy plc (LSE AIM: LGO) is pleased to advise that work has now begun in earnest to increase oil production at its Goudron Field in Trinidad and approvals have been granted by the Petroleum Company of Trinidad and Tobago Limited ("Petrotrin") and Ministry of Energy and Energy Industries to perforate a new oil zone well GY-671 in the Upper C-sands over a net pay interval of 208 feet. The Company is planning to perforate GY-671 shortly once the perforation equipment is mobilised to site.
In addition, the well GY-50 has now been successfully re-entered and logged to a depth of 2,428 feet. Following interpretation of these logs, an application will now be submitted to Petrotrin to perforate and complete 223 feet of new net oil pay in the Goudron Sandstone section in two intervals starting with a 164 foot zone between 1,192 and 1,615 feet. This well is expected to be perforated immediately after the completion of GY-671. The second pay zone will be completed at a later date.
Technical work has now identified an additional 6 existing wells that represent further low-cost opportunities to increase production by accessing previously uncompleted productive intervals in existing wells. Applications are being prepared to have these wells also approved for completion.
Neil Ritson, LGO's Chief Executive, commented:
"We are really pleased to be moving towards again adding new untapped oil production at the Goudron Field with these low cost, high impact recompletions and we would expect to see production starting to increase after a lengthy hiatus following the issues experienced with the loss of GY-678 in October last year. The recent reduction in overriding royalties by Petrotrin for the Goudron Field and the stabilizing oil price are both providing encouragement to increase investment and production."
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 38 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) 203 794 9230 |
Neil Ritson Steve Horton | |
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 |
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