LGO Energy has agreed to take a 25% stake in Beach Oilfield which sees the UK-based company gain exposure to shallow oil resources in the South West Peninsular projects in Trinidad.
It already holds an agreement to acquire the deep petroleum rights to all of Bolt’s SWP interests and now also has exposure to the producing Bonasse oilfield.
Chief executive Neil Ritson, said: “We consider the South West Peninsular of Trinidad to be a major medium term investment opportunity, especially the deep targets which have so far not been adequately explored.
“However, the acquisition of an interest in Bolt also gives rise to immediate access to shallower objectives including within the producing Bonasse oilfield.”
Ritson said there are plans to reinvigorate Bonasse, and the details will be revealed in “the next few months”.
LGO is paying US$250,000. It comprises US$50,000 of cash and US$200,000 paid in LGO shares. The deal gives LGO effective control of the company.
Bolt is controlled by the Persad family and operates approximately 5,450 acres of petroleum rights in the SWP.
The SW Peninsula, where LGO already has production from the shallow Icacos Oilfield, is significant since it is largely unexplored with regard to deep potential and in close proximity to the prolific East Venezuelan Basin of which the SWP is geologically a part.
Bonasse has been producing, since its discovery in 1911 by the Greig-1 well, from a total of up to 16 wells at depths up to 1,200 feet.
Present production restarted in 1997 has now dropped to below 10 barrels of oil per day from just 3 active wells.
LGO believes that significantly greater potential exists for additional production through the application of proven technologies.
Additional, shallow, drilling targets are also available within the field boundaries.