LGO Energy PLC Additional Recompletion Wells GY-668 and GY-288 (8525K)

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              [phone] 
 Neil Ritson 
 Fergus Jenkins 
 
 Beaumont Cornish Limited    [phone] 
 Nomad 
 Roland Cornish 
 Rosalind Hill Abrahams 
 
 FirstEnergy Capital LLP     [phone] 
 Joint Broker 
 Jonathan Wright 
 David van Erp 
 
 Bell Pottinger              [phone] 
 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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September 27, 2016 02:00 ET (06:00 GMT)