LGO today announces an update on oil production in Trinidad. During the last week production at the Goudron and Icacos Fields in Trinidad (LGO, 100% and 50% respectively) has averaged over 170 bopd, with production reaching 201 bopd on the 27 January 2012, the last day for which reports are available.
The Company's Chief Executive, Neil Ritson, said:
"Our production in Trinidad continues to grow rapidly in line with our expectations. The plans we have in place should ensure continuous growth for the immediate future. Production in Trinidad has now surpassed Spain and we are delighted with our decision to focus more of our resources on Trinidad, and we look forward to issuing further updates as the year progresses."
The Goudron Field has now exceeded the second production target of 150 bopd set by the Company when it acquired the operatorship of the field in October 2012. The first production goal, of 100 bopd, was reached on the 20 November 2012.
The Company has carried out well investigations at Goudron on over 30 wells to date, of which 13 have been the reactivation of previously producing wells that have been dormant for a number of years. Currently the Company is producing from 22 wells. LGO plans to continue its programme of well work-over and reactivations and now expects to be able to achieve production from at least 50 wells within 12 months of the acquisition.
A number of well re-completions, including the perforating of new reservoir zones, are also being planned for the second quarter 2013. This work will be conducted from cash flow within the Group. The drilling of new wells at Goudron will be undertaken later in 2013 with a minimum of two new wells to be drilled. These new wells are anticipated to cost approximately US$400,000 each.
Production continues at the Company's non-operated Icacos Field (LGO 50%) in Trinidad has recently averaged 32 bopd gross (16 bopd net to LGO).
The process of assignment of the Moruga North leases and operatorship, as previously announced in November 2012, is continuing and the Company plans to reactivate the existing 2 wells and to drill at least one new well in 2013. This licence assignment still requires formal approval from the Trinidad and Tobago Ministry of Energy and Energy Affairs.
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