LGO Energy has started production from the GY-277 oil well, the fourth of its planned heavy work-overs at the Goudron Field in Trinidad.
The well is currently producing at a rate of 34 barrels of oil per day.
Goudron E&P, LGO’s operating subsidiary, has received an agreement from BNP Paribas to use local currency in operations such as GY-277 to maintain production.
A further five target wells have been approved by London-based LGO’s management for recompletion over the next few months at an average cost of about $50,000 per well.
Those funds are currently available following a TT$5.2 million vat rebate associated with the company’s 2015 drilling activities.
LGO chief executive Neil Ritson said: “We are continuing with the workover activity previously planned and announced. In parallel, locations are being prepared for infill drilling in the Mayaro Sandstone reservoir which holds approximately 65,000 barrels of very low risk and low cost oil production potential per infill well according to the recent Competent Persons Report prepared by Deloitte. It is now hoped to get infill drilling underway by the end of 2016.”