LGO Energy PLC Additional Recompletion Wells GY-668 and GY-288 (8525K)
September 27 2016 - 1:00AM
UK Regulatory
TIDMLGO
RNS Number : 8525K
LGO Energy PLC
27 September 2016
For Immediate Release
27 September 2015
LGO ENERGY PLC
("LGO" or the "Company")
Additional Recompletion Wells GY-668 and GY-288,
Goudron Field, Trinidad
LGO is pleased to announce that stable production has now been
established from a new oil pay interval in well GY-668, the fifth
of its planned heavy work-overs at the Goudron Field in Trinidad,
and that GY-288, the sixth well in the program has now been
perforated. A total of 89 feet of perforations were added to the
Mayaro Sandstone, at depths between 1,265 and 1,385 feet, in GY-668
and a further 45 feet in GY-288 between 1,236 and 1,289 feet. These
reservoir intervals have not previously been completed for
production.
As with earlier wells in the current workover program these
wells were recompleted using wireline perforating guns and will be
placed on downhole pumping. The GY-668 well has been placed on pump
production and after clean-up produced at a rate of approximately
15 barrels of oil per day ("bopd") of 36.6 degree API oil.
The cost of the operations to recomplete GY-668 totalled
US$40,000 and at current oil prices and anticipated flow rates
based on a flow rate of 15 bopd pay-back will be achieved in under
3 months. Additional low capital cost production is especially
attractive since incremental operating costs for new production at
Goudron are less than US$3 per barrel.
The oil gravity recorded from initial production in GY-288
yesterday was 32.7 degree API. The well is undergoing clean-up and
is anticipated to produce approximately 15 bopd once stable
production is achieved, which will lead to payback in between 2 and
3 months.
The Company plans to continue with the heavy work-over program
and has selected wells GY-193 and GY-240 for work-over operations
in the next 4 to 6 weeks. Since announcing the heavy workover
program aimed at increasing production at the Goudron Field in
April 2016 a total of six wells have been recompleted.
Neil Ritson, LGO's Chief Executive, commented:
"As planned we are maintaining production output at Goudron
through a carefully managed program of low cost, rapid payback,
heavy work-overs prior to the anticipated drilling of new infill
wells to the Mayaro Sandstone which it is hoped will commence
before year end."
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 (BGS).
Enquiries:
LGO Energy plc +44 (0) 203 794 9230
Neil Ritson
Fergus Jenkins
Beaumont Cornish Limited +44 (0) 20 7628 3396
Nomad
Roland Cornish
Rosalind Hill Abrahams
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:
API American Institute of Petroleum
----------------- ------------------------------------------
bopd barrels of oil per day
----------------- ------------------------------------------
Mayaro Sandstone sandstone reservoirs above the pre-Mayaro
unconformity, previously also referred
to as the Goudron Sandstone
----------------- ------------------------------------------
psi pounds per square inch
----------------- ------------------------------------------
US$ United States dollars
----------------- ------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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