LONDON (Alliance News) - LGO Energy PLC on Tuesday said stable production has now been established from a new oil pay interval in well GY-668 at the Goudron field in Trinidad.
In addition, GY-288, which is LGO's sixth well to be recompleted, has now been perforated.
A total of 89 feet of perforations were added to the Mayaro sandstone in GY-668, and a further 45 feet of perforations in GY-288.
LGO said GY-668 has been placed on pump production, after producing around 15 barrels of oil per day following clean-up. The cost of recompleting GY-668 totalled USD40,000, which will be made up for in under three months based on current oil prices and anticipated flow rates, it said.
Meanwhile, GY-288 is now undergoing clean-up, following which it is also expected to produce around 15 barrels of oil per day once stable production is achieved. This will lead to payback in between two and three months.
LGO added that it plans to continue with the heavy work-over programme and has selected wells GY-193 and GY-240 for work-over operations in the next four to six weeks.
"As planned we are maintaining production output at Goudron through a carefully managed programme 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," Chief Executive Neil Ritson said in a statement.
Shares in LGO were trading up 1.4% at 0.101 pence on Tuesday morning.
By Karolina Kaminska; email@example.com @KarolinaAllNews
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