LGO Energy PLC has today told DirectorsTalk that its latest development well, GY-677, at its Goudron Field development in Trinidad, which was spudded on 27 July 2015 reached total depth at 3,135 feet measured depth (“MD”) on 8 August. Electric log interpretation from both the Goudron Sandstone and C-sand reservoir intervals confirm the presence of recoverable hydrocarbons with the net hydrocarbon pay in the C-sand main target estimated as 130 feet.
Neil Ritson, LGO’s Chief Executive, commented: “The drilling at Goudron has continued to successfully discover productive C-sand reservoir and also confirm the ubiquitous presence of Goudron Sandstone oil pay. Drilling times have been shortened significantly which is important as we look to managing our capital efficiently in the presence of sustained low commodity prices. A low operating cost combined with careful deployment of capital allows Goudron to be developed profitably despite the low oil price.”
Well GY-677 was the sixth of seven wells currently planned for 2015 and the third well from drilling Pad-5 in the north-east of the field. Net oil pay in the Goudron Sandstone was encountered down to 1,470 feet with an estimated 355 feet of total net pay. The oil bearing C-sand interval was encountered between 1,995 and 2,975 feet MD. Net hydrocarbon bearing pay in the C-sand interval is estimated as 130 feet. These observed net pay zones are in line with the pre-drill expectations for this well.
Well GY-677 has now been successfully cased for future production and the rig is being moved back to drilling Pad-3, where the final planned well for the current campaign, GY-678, is planned to be drilled to a total depth of 4,200 feet MD (4,028 feet TVDss) at a location 650 feet west-north-west of the surface location. Well GY-678 is once again targeting a C-sand reservoir interval and has been high-graded as the next C-sand target due to its similarity at reservoir level to wells GY-670 which was drilled and completed in late 2014 and has so far produced in excess of 105,000 barrels of oil.
Once the drilling rig has been moved from Pad-5 production completion operations will be able to commence. All production infrastructure necessary for the production from Pad-5 is already in place and production is expected to commence in late August.
To assist with the anticipated enhanced oil recovery (“EOR”) project, a core and pressure data will be acquired in GY-678 and will be deployed in the ongoing EOR design work which the Company hopes will lead to a pilot water flood commencing in 2016.
