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UPDATE - Leni Gas shares rise 17% as it says it is ready to drill first Trinidad well

Published: 05:53 17 Apr 2014 EDT

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Shares in Leni Gas & Oil (LON:LGO) rose 17% after it said it is ready to spud the first well on the Goudron Field in more than three decades following sign-off by the Ministry of Energy and Energy Affairs.

The Well Services Petroleum Company has mobilised its rig, which is scheduled to start drilling after the Easter break.

The well, named H-18E J-7, is targeting known productive sandstone intervals in the Lower Cruse at a depth of 2,800 feet sub-sea.

It will then be deepened to ensure all potentially productive horizons are intersected.

Leni chief executive Neil Ritson said: "After careful planning we are ready to commence the drilling of the first of many infill development wells at Goudron.

“We are especially grateful for the support we have received in this process from Petrotrin.

“The use of modern drilling equipment and techniques are expected to contribute significantly to the potential flow rates that new wells can achieve.

“We are naturally very excited to have reached this point and look forward to announcing results as they are available."

Production from Goudron currently comes from 70 reactivated wells whose operations will “largely unaffected” by the drilling.

Leni plans a programme of 30 new wells that could add 1,500 barrels a day to production.

The stock rose 0.13p to 0.88p, although Old Park Lane Capital reckons Leni is worth 3.5p a share.

Repeating his 'buy', head of research Barney Gray said: "The use of modern drilling equipment is likely to substantially increase Leni’s oil production over the next three years and a series of successful well results have the potential to increase significantly the proportion of Goudron reserves in the proven category."

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