LGO Energy PLC Successful well GY-682,Goudron Field (2125Z)
13 March 2017 - 6:00PM
UK Regulatory
TIDMLGO
RNS Number : 2125Z
LGO Energy PLC
13 March 2017
For Immediate Release
13 March 2017
LGO ENERGY PLC
("LGO" or the "Company")
Successful well GY-682, Goudron Field, Trinidad
LGO, the oil and gas company with reserves, resources and
production onshore Trinidad, is pleased to announce that its first
development well GY-682 in the new drilling campaign on the
Company's Goudron Field, reached total depth ("TD") at 1,145 feet
measured depth on 8 March 2017. Electric log interpretation of the
Mayaro Sandstone target interval confirms the presence of oil over
an estimated net reservoir thickness of 408 feet. It has been
decided to perforate and place on production 273 feet of the best
net oil pay within the Mayaro reservoir.
Well GY-682 will shortly be put on production with a downhole
pump and a stabilised production rate will be established, at which
point the Company expects to announce the average initial flow
rate. GY-682 is one of a programme of planned Mayaro infill wells,
each of which is forecast to have average initial production rates
of 45 barrels of oil per day ("bopd") of light sweet crude, with
low decline rates. The well was drilled on time, in 5 days, without
incident and is expected to be on budget; costing US$500,000.
Neil Ritson, LGO's Chief Executive, commented:
"I am delighted that, having sorted out the balance sheet issues
in 2016, we are back to development drilling at Goudron. The first
well has been a success, having drilled to TD in under a week and
is showing the expected net oil pay. Production will start shortly,
adding to our production base and the rig will move to the next
well site. After months of restructuring, we now have momentum back
in the business."
The next well, GY-683, in the shallow infill program will be
spudded shortly. Three additional wells have been now approved by
the Ministry of Energy and Energy Industries as part of the ongoing
development in which 45 wells have already received environmental
approvals.
LGO has 11.8 million barrels ("mmbbls") of Proven and Probable
Reserves ("2P") in the Goudron Field and is currently producing
light sweet oil with an average API gravity of 37 degrees. In
addition to its reserve base LGO has significant low risk, onshore
upside in the Trinidad portfolio including 22 mmbbls of most-likely
("P50") Contingent Resources ("2C") in the Goudron Field and an
estimated gross P50 unrisked oil in place of 1.3 billion barrels in
the South West Peninsula leases.
Qualified Person's Statement:
The information contained in this announcement has been reviewed
and approved by Neil Ritson, Chief Executive Officer and Chairman
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 (FGS).
Enquiries:
LGO Energy plc +44 (0) 203 794 9230
Neil Ritson/Fergus Jenkins
Beaumont Cornish Limited +44(0) 20 7628 3396
Nomad and Joint Broker
Rosalind Hill Abrahams/Roland Cornish
FirstEnergy Capital LLP +44(0) 20 7448 0200
Joint Broker
Jonathan Wright/David van Erp
VSA Capital +44 (0) 20 3005 5000
Financial Advisers
Andrew Monk/Andrew Raca
Camarco +44 (0) 20 3757 4983
Public and Investor Relations
Gordon Poole/Billy Clegg
Glossary:
2C most likely or P50 Contingent Resources
according to PRMS
-------------------- ---------------------------------------------
2P the Proven plus Probable Reserves
according to PRMS
-------------------- ---------------------------------------------
API gravity a measure of oil density. API gravity
is the inverse measure of a petroleum
liquid's density relative to that
of water, which is designated with
a value 10. If one petroleum liquid
is less dense than another, it has
a greater API gravity
-------------------- ---------------------------------------------
electric logs tools used within the wellbore to
measure the rock and fluid properties
of the surrounding formations
-------------------- ---------------------------------------------
Mayaro Sandstone alternative name for the Goudron
Sandstones occurring at stratigraphic
intervals above the pre-Mayaro unconformity
-------------------- ---------------------------------------------
oil in place stock tank oil initially in place,
or STOIIP those quantities of oil that are
estimated to be in known reservoirs
prior to production commencing
-------------------- ---------------------------------------------
P50 (best estimate) the most likely estimate of a parameter
based on all available data, also
often termed the P50 (or the value
of a probability distribution of
outcomes at the 50% confidence level)
-------------------- ---------------------------------------------
pay or 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
-------------------- ---------------------------------------------
perforate / the process of creating holes in
perforations the casing, typically using explosive
charges, to allow the reservoir to
be in communication with the production
wellbore
-------------------- ---------------------------------------------
PRMS the Society of Petroleum Engineer's
Petroleum Resources Management System
-------------------- ---------------------------------------------
Probable Reserves those additional reserves which analysis
of geoscience and engineering data
indicate are less likely to be recovered
than Proved Reserves but more certain
to be recovered than Possible Reserves.
It is equally likely that actual
remaining quantities recovered will
be greater than or less than the
sum of the estimated Proved plus
Probable Reserves (2P)
-------------------- ---------------------------------------------
Proven Reserves those quantities of petroleum, which,
by analysis of geoscience and engineering
data, can be estimated with reasonable
certainty to be commercially recoverable
(1P), from a given date forward,
from known reservoirs and under defined
economic conditions, operating methods,
and government regulations
-------------------- ---------------------------------------------
TD total depth
-------------------- ---------------------------------------------
Notes to Editors
LGO Energy plc is an onshore Trinidad focused production,
development and exploration company. The Company has an estimated
11.8 mmbbls of 2P reserves in the Goudron field which produces
light sweet crude (average 37 degree API).
In addition to its reserve base, LGO has significant low risk,
onshore upside in the Trinidad portfolio with 22 mmbbls of 2C
contingent resources in the Goudron field, associated with an
enhanced oil recovery waterflood project, and an estimated unrisked
oil in place of 1.3 billion barrels in the South West Peninsula
leases.
Trinidad has an established oil economy with infrastructure,
skills and people. Trinidad has produced over 3 billion barrels of
oil to date onshore over the last 100 years and the geology is low
risk and highly prospective. Major oil companies operating in
country include BP, Shell, BHP Billiton and Perenco. Despite the
historical financial constraints, LGO has maintained its license to
operate with strong relationships with the State Oil Company,
communities, supply chain and Government.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLJTMPTMBABBPR
(END) Dow Jones Newswires
March 13, 2017 03:00 ET (07:00 GMT)
Columbus Energy Resources (LSE:CERP)
Historical Stock Chart
From Apr 2024 to May 2024
Columbus Energy Resources (LSE:CERP)
Historical Stock Chart
From May 2023 to May 2024