Leni Gas & Oil's Drilling Update On Goudron
Leni Gas & Oil (LGO) informed today that well GY-665, the second of 30 new development wells, has now intersected 687 feet of gross oil bearing sands in the Gros Morne formation, the primary target of this well, from 2,006 feet to 2,693 feet.
At 10 am (Trinidad time) yesterday, the well had reached 2,750 feet at the base of the Gros Morne sandstone member of the Moruga Formation and, due to the high quality of Gros Morne hydrocarbon indications already encountered, the decision has been made to shorten the planned total depth of the well at the current depth and to avoid any operations risks which would be associated with deepening the well into the secondary targets and in order to accelerate the time frame to production.
The well will now be electrically logged and cased, and completed as a Gros Morne producer. Net pay will be confirmed by means of electric logging, however, the Company is confident that this will be comparable to the nearby GY-664 well completed last month. The previous plans to intersect the Lower Cruse will be carried over to one of the other three wells to be drilled from this well site.
Well GY-665 is approximately 800 feet south-west of the first new well, GY-664. GY-665 is the first of four planned wells from the same drill pad. Wells GY-664 and GY-665 are separated by a known fault zone with GY-665 structurally shallower. The first new well, GY-664, continues to produce at a steady rate and pressure through a 6/32-inch choke and has now been tied in by flow line to the newly refurbished Tank Battery #207.
The Company has already reported that GY-665 intersected a net oil pay in the Goudron sandstones of at least 270 feet in the interval 590 to 1,440 feet. This net oil pay has been confirmed by independent petrophysical consultants from the electric logs taken from surface to first casing point at 1,606 feet.
In the light of the results in the current drilling campaign the Company has initiated arrangements to mobilize a second drilling rig to the Goudron Field in order to accelerate the drilling of additional wells. Additional information on this will be provided as soon as it is available.
Neil Ritson, LGO's Chief Executive, commented, "The results of these first two wells begin to validate our geological models and give the Company greatly increased confidence in accelerating the redevelopment program. 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."