I took a speculative punt on Leni Gas and Oil (LON:LGO) Friday at 3p based on the early drilling success of the first two wells of a 30 well simultaneous campaign at the Goudron asset in Trinidad.
The first well completed was the Goudron GY-664 which was successfully brought on production at a rate of 240 barrels of 37 API oil per day. Neil Ritson, LGO's Chief Executive, commented following the GY-664:
"This is a very significant outcome and I am sure it will be completely transformational for the field and the Company. As the first new production well on the field for over 30 years, GY-664 was drilled with an on-balance mud system and completed with modern tubing conveyed guns. The initial flow rate demonstrates the value of this approach; exceeding the historic averages four-fold. We fully expect many more similar results as the drilling campaign progresses and indeed well GY-665 is already showing considerable potential."
Well Services Rig 20 following the success of well GY-664 then moved to the GY-665 which is around 800 feet to the south-west of the first well where the next four planned wells will be drilled from the same drill pad. Making it two in a row for Leni Oil and Gas the GY-665 was cased to a depth of 2,736 feet with the company reporting that electric logs run to total depth have indicated the presence of a total of 526 feet of net oil pay; 270 feet in the Goudron sandstone and 256 feet in the Gros Morne sandstone.
The third well of the 30 well campaign is now due to spud and the company have highlighted that in the light of the results in the current drilling campaign Leni Oil and Gas has initiated arrangements to mobilize a second drilling rig to the Goudron Field in order to accelerate the drilling of additional wells.
- On Friday 13 June through my twitter account @EliasJones1 I asked David Lenigas the Executive Chairman Leni Gas and Oil, if there is a production capacity for the asset? Could you get 1,000bopd online if applicable in the future?
In reply Mr David Lenigas @DavidLenigas stated:
- Absolutely. Multiples of that. We should get there quite quickly if the first 2 wells are anything to go by. Let's see though.
- LGO spent a year building new infrastructure. Limited only by how many times…
