LGO Energy (LGO)

 

LSE:LGO: Drilling Update, Goudron Field, Trinidad

LGO Energy

04 Jan 2017 07:00:21

LGO Energy PLC

RNS Number : 2688T
LGO Energy PLC
04 January 2017
 

For Immediate Release, embargoed until 7 am

 

                                                                                                                                                                                      4 January 2017

 

 

LGO ENERGY PLC

("LGO" or the "Company")

 

Drilling Update, Goudron Field, Trinidad

LGO is pleased to provide a further update on its plans to recommence production drilling at the Goudron Field in Trinidad following its announcement of 21 December 2016.

The Company's local operating subsidiary, Goudron E&P Limited ("GEPL"), has received approval from the Petroleum Company of Trinidad and Tobago ("Petrotrin") and the Ministry of Energy and Energy Industries ("MEEI") for the first of its planned Mayaro Sandstone infill wells, currently designated H18E G11(5).  That well will be drilled vertically to a total depth of 1,250 feet and is expected to intersect the Mayaro Sandstone oil pay between 650 and 1,050 feet. 

GEPL has awarded a drilling contract to Trinidad specialist drilling contractor Sadhna Petroleum Services Company Limited ("Sadhna") for the drilling for two firm and a number of optional wells on a turnkey drilling basis using a small footprint conventional (rotary table) drilling rig.  Site preparation will be conducted by Sadhna and will commence as soon as practical, after which rig mobilisation and drilling are anticipated to commence without delay.  Individual wells are expected to take about 14 days to drill and complete for immediate production.

LGO has also engaged Bedrock Drilling Limited ("Bedrock"), a UK based specialist drilling engineering company, to provide drilling engineering supervisory support to the drilling program. Bedrock will provide a site supervisory team during drilling and additional engineering and advisory support to GEPL.

Permission to drill the second Mayaro Sandstone infill well in the program, designated H18E N4, was sought from Petrotrin and the MEEI in December 2016 and approval is expected to be received shortly after which site preparation is expected to commence immediately following the site work at H18E G11(5).

GEPL has outline approval for up to 45 new wells in the Goudron Field and a program of up to 70 infill production wells to the field-wide Mayaro Sandstone oil pay is contemplated, commencing with the current initial well program which will be expanded based on results and the availability of funding.

Neil Ritson, LGO's Chief Executive, commented:

"We are pleased to be able to start 2017 by announcing that the practical preparations for an imminent return to development drilling are now firmly underway and that we can expect drilling of the Mayaro infill program to get started shortly as announced in December."

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:

Goudron Sandstone

sandstone reservoirs above the pre-Mayaro unconformity. These sandstones will in future releases be termed the Mayaro Sandstones to avoid any possible confusion between the field name and the sandstone reservoir.

pay and net 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

Mayaro Sandstone

alternative name for the Goudron Sandstones occurring at stratigraphic intervals above the pre-Mayaro unconformity

reservoir

a subsurface rock formation containing an individual natural accumulation of moveable petroleum

rotary table

a mechanical device on a drilling rig that provides clockwise (as viewed from above) rotational force to the drill string to facilitate the process of drilling a borehole

sandstone

a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to describe consolidated sand or a rock made of predominantly quartz sand

total depth or TD

the maximum drilled depth reached by a well

 

 


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