Goudron Well GY-666 drilled to a total depth of 3,357 feet
Leni Gas & Oil PLC announces that well GY-666 has been successfully drilled to a total depth of 3,357 feet measured depth and that analysis of the electric logs has indicated the presence of a total of at least 394 feet of net oil pay; with 185 feet of net oil pay in the Goudron Sandstone, as previously announced, and a further 209 feet of net oil pay in the Gros Morne Sandstone.
Neil Ritson, the Company’s Chief Executive, commented:
“The log characteristics and pressures encountered while drilling indicate that well GY-666 should be another excellent Gros Morne producer and we look forward to completing it, and existing well GY-665, when the rig concludes the four well drilling campaign on this pad.”
A further 38 feet of net gas sand was encountered in this well below the Goudron Sandstone and above the oil zone in the Gros Morne and at similar depths to that observed in nearby well, GY-665. Whilst of no immediate commercial significance the presence of gas provides additional value for future exploitation.
A 7-inch casing will now be run to TD in the well and cemented in place. Further analysis will also be conducted on the Lower Cruse interval which is present at a depth of approximately 3,230 feet MD, but which has so far not been fully analyzed. Based on the data available it is planned to complete the well as a Gros Morne oil production well.
LGO intends to continue with the planned program of 30 new development wells including at least five further wells with Well Services Rig 20. The mobilisation of a second rig is still planned when a suitable unit has been identified and contracts negotiated.
Following a review of the electric logs for the Goudron Sandstone interval in GY-665 the net pay previously announced on 17 June 2014 has been revised upwards from 159 feet to 195 feet. The interpretation of the GY-665 logs has been improved through the running of different down-hole tools in GY-666. The table below has been revised to reflect this change.
Competent Person’s Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil 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.