LGO today confirmed its latest well hit an oil pay, which surpassed expectations.
The firm’s GY-683 achieved an initial production at 80 bopd – “significantly ahead of the pre-drill expectation”.
The well, which was drilled to a total depth of 1,250 feet measured depth and perforated over a 269-foot interval of net oil pay within the Mayaro Sandstone reservoir, is now on production.
The well is the first in the a new drilling campaign on the Goudron Field.
It is anticipated that once the natural flow period ends, the well will be placed on pump at an initial stabilised rate estimated to be approximately 65 bopd.
Chief executive Fergus Jenkins said: “As with the first well GY-682, this second well has come in ahead of the average expected for initial production rate, giving confidence that the new drilling campaign is on track to substantially increase production from Goudron over the year. The initial free flowing dry oil nature of the well suggests a high quality reservoir and higher than anticipated inflow rates which is a very positive outcome.”
GY-683 is the second of a programme of up to 10 infill wells planned for the Mayaro Sandstone in 2017 and early 2018. Each well is forecast to have average initial pumped production rates of 45 bopd of light sweet crude, with the field historically demonstrating low decline rates consistently less than 20% per annum.
A spokesperson added: “The company has approvals in place for the next three wells in the campaign and is currently evaluating the necessary drilling contracts prior to embarking on the next three to five wells in the planned programme. With improved oil prices and rising production, on which incremental opex is approximately US$2 per barrel, the company is continuing to increase its revenue generation.”