LONDON (Alliance News) - Leni Gas & Oil PLC Tuesday said its third new development well at the Goudron Field in Trinidad has intersected oil in the Goudron sandstones, before moving towards its primary target in the next week.
The oil and gas exploration and development company said its GY-666 well at the site has found a 185-foot region of net oil pay in the Goudron sandstones region, based on independent petrophysical analysis of the electric logging.
The company said the well has reached an intermediate depth of 1,667 feet of measured depth and is now being cased before drilling ahead to its primary target, the Gros Morne sandstone region, which is expected at 2,050 feet.
"Below the Goudron sands in GY-666 we have encountered gas shows and pressures similar to those seen in the recent GY-665 well at Gros Morne level and are therefore expecting to drill a productive primary reservoir in the next week," Chief Executive Neil Ritson said in a statement.
Just two weeks ago, the company said the second development well at the site, GY-665, found oil, and it was expecting similar results from the third well, GY-666. The first well, GY-664, was completed last month and stabilised production at a strong rate of 240 barrels of oil per day in early June, after an initial flow rate of 326 barrels of oil per day. Leni Gas & Oil is planning 30 new development wells in total.
The company is currently completing the GY-665 well as a Gros Morne producer once the rig is demobilized from the well pad. The reservoir pressure recorded at the Gros Morne in GY-665 is higher than that observed in GY-664, and this is likely to lead to improved production potential, it predicted last week.
Leni Gas & Oil shares were up 5.7% to 4.15 pence, putting it amongst the top AIM ALL-Share risers during early trading on Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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