LGO plans to recommence production drilling at the Goudron Field in Trinidad

On Jan 4, 2017

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.”