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LGO Energy looks to production growth from South West Peninsula assets

Published: 04:13 03 May 2017 EDT

Onshore oil drilling
LGO has interests in 10,000 acres in the South West Peninsula

LGO Energy PLC (LON:LGO) highlighted the handover and restart of the Bonasse field on the South West Peninsula, in Trinidad, as it updated on its operations on the Caribbean island.

The company, via its subsidiary Leni Trinidad Limited (LTL), holds interests in more than 10,000 acres of prospective but underexplored acreage on the peninsula, including interests in the Icacos and Bonasse field.

LTL’s stake in Bonasse is held by a 25% shareholding in the field’s owner Beach Oilfield Limited (BOLT) and earlier this year it reached an agreement to acquire the rest of the business.

WATCH: LGO Energy's boss 'excited' about exploration prospects on South West Peninsula

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The process to complete the acquisition of BOLT has been delayed, nonetheless, the operation of Bonasse is now being handed over. Some 200 barrels of oil has been transported from Bonasse to the point of sale at Point Fortin, and will be sold to Trinidad’s Petrotrin in the next few days.

LTL expects to start regular oil sales and will increase production rates by recommissioning existing wells and existing fields. LTL’s share of Icacos production amounted to 12 bopd.

Production from the South West Peninsula will add to the group’s output from the Goudron field, where it recently added two new wells, GY-682 and GY-683.

"Increasingly LGO is focusing on its South West Peninsula assets and is looking forward to completing the licensing process and an independent resources evaluation this year,” Neil Ritson, LGO chief executive.

“The recommencement of oil operations at the Bonasse Field is very encouraging and adds to the growing momentum the Company has at the Goudron Field."

Stable flow rate significantly above average prognosis

GY-683 is now being pumped, producing a stable rate of 55 bopd remaining significantly ahead of average prognosis of 45 bopd. The company says the production data strongly suggests that the well is not ‘in communication’ with depleted sandstone reservoirs in nearby wells.

The other well, meanwhile, was producing at an average of 32 bopd with a relatively high water cut - suggesting that some perforated zones are affect by depletion. LGO intervened in the well, though its production has still to stabilise. The well will be left on pumped production and further interventions could take place later.

Production from Goudron totalled 435 bopd in the first quarter of the year, and figures for the second quarter will include output from the GY-682 and GY-683 wells - so it is anticipated to see a significant improvement in production.

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