Home' Trinidad and Tobago Guardian : January 7th 2015 Contents A13
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LGO Energy plc s oil sales have
increased, its production has quintupled,
its share price has grown more than 400
per cent, and it is able to sustain low oil
prices thanks to its low operating costs.
Giving the London Stock Exchange (LSE)
an update on its production and Goudron
field yesterday, Neil Ritson, LGO CEO said:
"The 2014 work programme, and especially
the GY-670 well, has been truly transfor-
mational for LGO with a five-fold increase
in sustainable daily group production. As
we move into the 2015 drilling programme
we have high hopes of continuing the success
we have seen in the past year. The low cost
of our operations ensures they are sustain-
able at low oil prices and we have no plans
to decrease the extent of our work pro-
gramme at Goudron.
"We have received excellent co-operation
and support from both Petrotrin and the
Ministry of Energy and Energy Affairs in
the last two years. The recent success of
GY-670, which the Ministry has cited as
the most significant new onshore production
well for two-decades, is a demonstration
of how our investment and their support
is paying dividends."
The company's share price has quadrupled
in one year on the recurring news of oil
finds. LGO was trading on the LSE for
0.8050---a fraction of a pence---on January
6, 2014. Yesterday, it was trading well above
its new 2.4 pence floor, at 3.285 pence per
"Since LGO's announcement on Decem-
ber 15, well GY-670 has continued to produce
at a consistently high rate and at a high
well-head flowing pressure. The well has
averaged 1,045 barrels oil per day (bopd) of
37 degree API oil since being placed on pro-
duction on a highly restricted basis at an
average wellhead flowing pressure of 1,225
"The well is on a restricted flow rate using
a 10/32-inch choke to ensure that its long
term production potential is optimised; the
well has a calculated open-hole flow rate
in excess of 6,000 bopd," the LSE was told.
LGO's 10-day average production rate
has exceeded 2,000 bopd, since December
23, the company said. Average group pro-
duction for December was 1,685 bopd.
Well GY-671, the company's seventh
newly drilled well, was perforated over a
171-foot interval of oil bearing C-sands on
December 17 and has flowed at restricted
rates up to 216 bopd and well-head flowing
pressures of up to 900 psi with a 12/32-
Well GY-669, the eighth and last well
drilled at Goudron in 2014, is currently
being prepared for completion in the C-
sands and is expected to be on production
over the next week, the company said.
LGO said it has formally lodged appli-
cations for the clearing of the next two drill
sites, Pad-4 and Pad-5, and site preparation
work is expected to begin shortly. Once
Pad-4 is ready to receive a drilling rig, Well
Services Rig-70, which is under contract
to LGO for this work, will be mobilised to
"The rate of oil sales has been substantially
increased with the active co-operation of
Petrotrin and there are no anticipated bot-
tlenecks in oil sales throughout 2015 as we
increase production with the addition of
LGO says it can
sustain low oil prices
Operators of private members clubs say it is
unfair that they have to pay taxes in advance
when other industries do so on a quarterly
They raised this concern as Government gets
ready to present draft legislation to regularise
the local gaming industry which has been func-
tioning illegally for decades.
Former chairman of the Association of Mem-
bers Clubs, Charles Sookhan, told the T&T
Guardian while gaming operators are happy with
the proposed changes and the regulations outlined
in the Finance Bill, they feel the stipulation to
pay taxes in advance is "quite unfair."
"Previously you could pay taxes quarterly but
now they want you to pay in advance. That is
not fair to us because lets say you have to close
your club for a year, you will not get a rebate
on taxes," he said.
Sookhan said gaming has tremendous potential
for tourism and he hoped that Finance Minister
Larry Howai would take group's recommenda-
tions into consideration when the draft bill is
laid in Parliament next month.
"We hope to continue consultation so we can
operate within a legal framework," he said.
Howai believes that once the gaming industry
is regularised, it could contribute almost $300
million annually in taxes. The industry employs
almost 7,000 people and has an associated weekly
wage bill of $6.74 million.
President of the T&T Private Members' Club
Association (TTPMA), Sherry Persad, said she
is happy with the moves to regularise the industry.
"We want when our employees go to the banks
to get a loan they are not turned down. We have
always been for regulations," she said.
"We should be able to operate and be termed
as legal and pay a fair amount of taxes like any
Asked whether her association planned to pro-
vide assistance for compulsive gamblers, Persad
denied there was a problem with gambling addic-
"We don't see that as a problem compared
with smoking or shopping. It is a minority addic-
tion," Persad said, although she admitted to not
having the statistics to back up her claims. She
also said more research needed to be done.
Persad also said that the TTPMA had a pro-
gramme in place to help compulsive gamblers.
If it is brought to our attention that they are
staying in the casino and not going home, we
have a psychologist that we refer them to get
special help. We also put a ban so they will not
play until they get treatment," she said.
industry set for
As T&T awaits Prime Minister Kamla
Persad-Bissessar's announcement of a
possible revision of the 2014/2015
budget on Thursday, the price of oil
continued to slide on international
West Texas Intermediate, which
trades within the range of the light
sweet crudes produced locally, dropped
by US$2.10 to US$47.98 a barrel on
the New York Mercantile Exchange.
The price of oil has fallen by more than
half since trading as high as US$107 in
June. Brent crude, the global
benchmark, was down US$1.83 at
US$51.34 a barrel.
Finance Minister Larry Howai said in
a recent television interview that
Government will revisit the US$80 per
barrel oil price on which the budget is
based. He said details will be
announced by Persad-Bissessar in an
address to the nation scheduled for
Oil continues slide, WTI now at US$47.98
A board above the floor of the New York Stock Exchange shows the intraday price of oil, top, yesterday. AP PHOTO
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