Leni Gas and Oil (LGO) said it has sold more than 100,000 barrels of Goudron oil since taking over operations in October 2012. LGO Chief Executive Officer Neil Ritson said in the statement to the London Stock Exchange: “A total of over 100,000 barrels of light, high quality crude oil has now been sold to the Petrotrin-owned Pointe-a-Pierre refinery in the last 18 months. An upward production trend is set to continue with the redevelopment of the field now underway.
“We have had considerable support from Petrotrin and the Ministry of Energy and Energy Affairs in our efforts to revitalise the Goudron Field, and are confident that LGO's approach can be repeated on other fields which will support of the ministry's objective of increasing the proportion of indigenous crude being refined at Pointe-a-Pierre, which last year averaged 81,157 barrels a day.
The current well GY-664 is exceeding our original prognosis and has now discovered commercially producible oil zones in the both the Goudron and Gros Morne sandstones, the well is now in the Lower Cruse and is expected to reach total depth shortly.”
Certified sales receipts to April 14, almost exactly 18 months after taking on the operatorship of the field, totalled just over 100,000 barrels and as of May 8, the company estimates sales to be 106,000 barrels. Goudron oil is piped directly to the Pointe-a-Pierre refinery which has an average throughput of approximately 127,650 barrels per day.
In October 2012, when LGO took control of the Goudron Field under an incremental production sharing contract (IPSC) with Petrotrin, field production was less than 40 barrels of oil per day (bopd). Since that time LGO's wholly owned subsidiary Goudron E&P Limited (GEPL) has reactivated more than 70 pre-existing wells and has begun a major new 30 well development programme to access the estimated 122 million barrels of proven and probable oil in place independently verified as remaining in the field.
GY-664 Update
Separately, LGO updated the market on the first of those 30 wells, GY-664. “Development well GY-664 has now intersected over 1,000 feet of gross oil bearing sands having drilled a further estimated 720 feet of oil sands in the Gros Morne formation, the first of the primary targets of the well. GY-664 earlier drilled over 350 feet of oil bearing sands in the Goudron formation. Drilling is continuing in the Lower Cruse, which is the third reservoir target of the well,” LGO said.
“Currently the first of 30 approved new development wells, GY-664, is being drilled. At 6 pm London time Sunday, the well was drilling ahead at 3,459 feet in Lower Cruse formation after a section of approximately 720 feet of Gros Morne sandstones which has so far received limited development in the field,” the company said. Well GY-664 should reach its planned total depth in the basal Lower Cruse formation at around 4,000 feet “within the next few days,” LGO said.
The well will then be logged and preparations will be made to place it on production. Initial production rates from new wells will be considerably in excess of those possible from the old wells that are presently contributing to production. Preliminary log analysis of the Goudron Sands, the secondary target of this well, which have been drilled, logged and steel cased has confirmed the presence of more than 350 feet of gross oil bearing sandstones in the interval between 479 and 1,527 feet.