Leni Gas & Oil issue production and drilling update, Trinidad
LGO is pleased to announce that the Company has now sold over 100,000 barrels of Goudron oil since taking over operations in October 2012.
Separately, development well GY-664 has now intersected over 1,000 feet of gross oil bearing sands having drilled a further estimated 720 feet of oil sands in the Gros Morne formation, the first of the primary targets of the well. GY-664 earlier drilled over 350 feet of oil bearing sands in the Goudron formation. Drilling is continuing in the Lower Cruse, which is the third reservoir target of the well.
Neil Ritson, LGO Chief Executive, commented:
“A total of over 100,000 barrels of light high quality crude oil has now been sold to the Petrotrin owned Pointe-a-Pierre refinery in the last 18 months. An upward production trend is set to continue with the redevelopment of the field now underway.
We have had considerable support from Petrotrin and the Ministry of Energy and Energy Affairs in our efforts to revitalise the Goudron Field and are confident that LGO’s approach can be repeated on other fields which will support of the Ministry’s objective of increasing the proportion of indigenous crude being refined at Pointe-a-Pierre, which last year averaged 81,157 barrels a day.
The current well GY-664 is exceeding our original prognosis and has now discovered commercially producible oil zones in the both the Goudron and Gros Morne sandstones, the well is now in the Lower Cruse and is expected to reach total depth shortly.”
Goudron Oil Production:
Certified sales receipts to 14 April 2014, almost exactly 18 months after taking on the operatorship of the field, totalled just over 100,000 barrels and as of 8 May the Company estimates sales to be 106,000 barrels. Goudron oil is piped directly to the Pointe-a-Pierre refinery which has an average throughput of approximately 127,650 barrels per day.
In October 2012, when LGO took control of the Goudron Field under an IPSC with the Petroleum Company of Trinidad and Tobago (“Petrotrin”), the Field production was less than 40 barrels per day (“bopd”). Since that time LGO’s wholly owned subsidiary Goudron E&P Limited (“GEPL”) has reactivated over 70 pre-existing wells and has begun a major new 30 well development programme to access the estimated 122 million barrels of proven and probable oil in place independently verified as remaining in the Field.
Currently the first of 30 approved new development wells, GY-664, is being drilled. At 6 pm London time yesterday, 11 May 2014, the well was drilling ahead at 3,459 feet in Lower Cruse formation after a section of approximately 720 feet of Gros Morne sandstones which has so far received limited development in the Field.
Well GY-664 should reach its planned total depth in the basal Lower Cruse formation at around 4,000 feet within the next few days. The well will then be logged and preparations will be made to place it on production. Initial production rates from new wells will be considerably in excess of those possible from the old wells that are presently contributing to production.
Preliminary log analysis of the Goudron Sands, the secondary target of this well, which have been drilled, logged and steel cased has confirmed the presence of over 350 feet of gross oil bearing sandstones in the interval between 479 and 1,527 feet.
The Company will provide further update as they become available.
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.