LGO Energy PLC Drilling Update, Goudron Field, Trinidad (2688T)

TIDMLGO

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              [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:

 
 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         a reservoir or portion of a reservoir 
  pay                 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         the maximum drilled depth reached 
  or TD               by a well 
------------------  --------------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 04, 2017 02:00 ET (07:00 GMT)