LGO.L Share News (LGO)

Shares in Leni Gas & Oil (LGO) jumped by almost a third on Monday morning after it revealed that its GY-665 well at the Goudron field in Trinidad has intersected 687 feet of oil bearing sands at its primary target.LGO said it is confident that the net pay will be comparable to the GY-664, which intersected a net oil pay in the Goudron sands of 270 feet last month. The positive result led the group to decide to shorten the planned total depth of the well at the current depth, thereby avoiding any operational risks associated with deepening the well into the secondary targets and accelerating the time frame to production.Following the results in the drilling campaign, the company has initiated arrangements to mobilise a second drilling rig to the Goudron Field in order to accelerate the drilling of additional wells.Neil Ritson, LGO's Chief Executive, said: "The results of these first two wells begin to validate our geological models and give the company greatly increased confidence in accelerating the redevelopment programme. Indications whilst drilling in the Gros Morne in the second well are sufficiently encouraging to recommend that this well be completed at that level without deepening to the secondary Lower Cruse target."The results of modern electric logs acquired so far in the Goudron sandstones strongly suggest that there is greater net sand than was previously thought and this is likely to increase the previously estimated oil-in-place. When combined with improved drilling techniques we believe that greater potential exists in the Goudron sandstone and hence the decision to look at mobilization of a second drilling rig."The share price jumped 28.93% to 3.90p by 09:55.NR