LGO Energy said production has now commenced from a new oil pay interval in well GY-673 as part of its planned heavy work-over at the Goudron field in Trinidad.
LGO said estimated oil reserves in its Goudron field are higher than previous estimate after a review was carried out by Deloitte.
LGO Energy said it has reached a further agreement on the terms of the loan understanding with its subsidiary Goudron E&P.
LGO Energy will benefit from lower royalty rates in Trinidad after state oil company Petrotrin slashed its take of production.
Caribbean focused exploration company LGO Energy has agreed a deal that could secure $20million of investment.
LGO Energy, the Trinidad-focused independent oil and gas firm has said it is open to offers as part of a formal strategic review.
LGO Energy has offered to pay drilling creditors in company shares in order to conserve cash to pay for production activities in Trinidad.
LGO Energy said it has been hit by delays as it looks to reach a settlement on the remaining capital costs of a recent unsuccessful drilling program. The company previously revealed last month the loss of well GY-678 and the downhole equipment it contained as well as the anticipated production from the well. LGO is waiting for BNP Paribas to approve the release of specific funds which were previously drawn-down.
LGO Energy has confirmed it has begun drilling its seventh well of the year in Trinidad.
LGO Energy said its most recently completed well is producing at a rate of more than 1,000 bopd. The GY-670 well, at its Goudron field in Trinidad, was perforated earlier this month over a 177-foot interval of oil pay in the c-sands. During the last 48 hours the well has flowed at an average rate of 1,104bpd and the initial open-hole flow rate calculated for the well exceeds 6,000 bopd.
Leni Oil and Gas (LGO) has confirmed its eighth Goudron-field well in Trinidad is ready for commissioning. Well GY-671 has reached a total measured depth of 3,598 metres, been electronically logged and cased for completion as a C-sand producer. A net oil pay interval of 244 feet has been recorded on the electric logs in the C-sand of GY-671 alongside two previously completed wells, GY-669 and GY-670.
LGO Energy said it has now recompleted work on the GY-667 well at its Goudron Field in Trinidad. The company said the well is currently flowing under its own pressure at a stabilized rate of 350 barrels of oil per day (bopd). An interval of 186 feet of net pay was perforated using tubing conveyed guns and an initial open-hole flow rate of 1,030bopd was observed.