LGO Energy PLC Goudron Drilling Update (2060S)

TIDMLGO

RNS Number : 2060S

LGO Energy PLC

06 July 2015

For Immediate Release, 7am

6 July 2015

LGO ENERGY PLC

("LGO" or the "Company")

Goudron Drilling Update, Trinidad

LGO is today pleased to announce that its latest development well, GY-675, at its flagship Goudron Field development in Trinidad, reached total depth at 3,660 feet measured depth ("MD") on 30 June 2014. Electric log interpretation from both the Goudron Sandstone and C-sand intervals confirm the presence of recoverable hydrocarbons with the net hydrocarbon pay in the C-sand main target estimated as 260 feet. The next well, GY-676, in the 2015 program has now been spudded.

Neil Ritson, LGO's Chief Executive, commented:

"Our C-sand drilling program at Goudron is progressing extremely well and we are now on our fifth well in 2015. In parallel, the production testing of the first three wells drilled this year is providing some encouraging results and we hope to have final flow rates from that work shortly. Additionally the recently published reserves assessment shows we have significant upside to pursue after the current seven well drilling campaign."

Well GY-675 is the fourth of seven wells currently planned for 2015 and the first well from drilling Pad 5 in the north-east of the field. Net oil pay in the Goudron Sandstone was encountered between 630 and 1,560 feet with an estimated 330 feet of total net pay. The oil bearing C-sand interval was encountered between 2,015 and 3,020 feet MD. Net hydrocarbon bearing pay in the C-sand interval is estimated as 260 feet. These observed net pay zones are in line with expectations for this well.

Well GY-675 has now been successfully cased for future production and the rig has been moved to the second location on Pad 5 where it has spudded the fifth well of the 2015 program, GY-676, which is planned to be drilled to a total depth of 3,640 feet MD (3,400 feet TVDss) at a location 325 feet north-west of the surface location. Well GY-676 is once again targeting a C-sand reservoir interval and the top Gros Morne sandstone reservoir (upper C-sand) is anticipated at 1,935 feet MD (1,700 feet TVDss).

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 35 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.

Enquiries:

 
 LGO Energy plc              +44 (0) 203 794 9230 
 Neil Ritson 
  Fergus Jenkins 
 
 Beaumont Cornish Limited    +44(0) 20 7628 3396 
 Nomad 
 Rosalind Hill Abrahams 
  Roland Cornish 
 
 FirstEnergy Capital LLP     +44(0) 20 7448 0200 
 Joint Broker 
  Jonathan Wright 
  David van Erp 
 Bell Pottinger              +44 (0) 20 3772 2500 
 Financial PR 
  Henry Lerwill

Glossary:

 
 C-sand   sandstone reservoirs below the pre-Mayaro 
           unconformity and above the pre-Lower 
           Cruse unconformity encompassing sandstones 
           of equivalent age to both the Gros 
           Morne and the Lower Cruse formations 
-------  -------------------------------------------- 
 pay      a reservoir or portion of a reservoir 
           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 
-------  -------------------------------------------- 
 MD       measured depth; the depth of a well 
           measured along the length of the 
           borehole 
-------  -------------------------------------------- 
 TD       total depth 
-------  -------------------------------------------- 
 TVDss    true vertical depth; the depth of 
           a well projected on to a vertical 
           line below the surface location and 
           corrected to a sea level datum 
-------  --------------------------------------------

This information is provided by RNS

The company news service from the London Stock Exchange

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