Home' Trinidad and Tobago Guardian : May 8th 2014 Contents MAY 2014 • WEEK TWO www.guardian.co.tt BUSINESS GUARDIAN
ENERGY | BG9
eni Gas & Oil plc (LGO) has
found oil bearing sands onshore
at Goudron, Guayaguare, but is
still drilling in search of an oil
reservoir, announcements made
by the company on the London Stock
Exchange (LSE) where it is listed, and trades
for about one pence. Up until April, the stock
had been trading for a fraction of a pence.
On positive news, including the finding
what is known in the industry as "first oil
pay," in a May 1 drilling report, the stock
has climbed to a near 12-month high of 1.17
pence. It closed yesterday at 1.12 pence or
LGO chairman and founder David Lenigas
tweeted earlier this week: "On a flight to
Trinidad tomorrow morning. Will be on the
Goudron Field Wednesday. Send pictures.
Hopeful near to primary targets by then."
Giving the LSE an update on Tuesday,
LGO said the first new development well in
the Goudron Field, GY-664, successfully
reached a depth of 1,680 feet at 7 am on
May 3, 2014.
A full suite of conventional electric logs
have been run to 1,680 feet and initial analysis
of those logs confirms the presence of over
350 feet of hydrocarbon bearing Goudron
Sands, the report said.
The first casing point was deepened from
an anticipated depth of 1,540 feet to 1,680
feet due to the well encountering a thicker
than expected section of oil bearing Goudron
Sands. The first 1,680 feet of well has now
been successfully cased and cemented with
9 5/8 inch steel casing.
Drilling is now continuing with an 8 1/2
inch hole section to a planned total depth of
approximately 4,000 feet in order to test the
primary objectives in the Gros Morne and
the Lower Cruse Sands at depths below 2,800
The company promised to provide addi-
tional information as it becomes available.
LGO chief executive officer Neil Ritson
said: "Excellent progress is being made with
the first of our 30 well development campaign.
Extensive oil bearing Goudron Sands have
been encountered and the well has been suc-
cessfully logged and cased and we are now
drilling ahead to the main objectives."
Ritson, who has more than 35 years of rel-
evant experience in the oil industry, is a petro-
leum engineer and geologist.
GY-664 is the first well of an approved
30 well development programme on the LGO's
Goudron Field in Trinidad, where it has a
100 per cent working interest. Goudron boasts
independently verified proven and probable
(2P) original oil in place of 126 million barrels
(mmbbls), of which only approximately four
mmbbls have been recovered to date.
In place 2P oil resources assigned by Chal-
lenge Energy in their 2012 independent report
totalled 72 mmbbls in the Goudron Sands
and a further 54 mmbbls in the Lower Cruse
To date the Goudron Field has been devel-
oped through a total of 154 wells drilled
between 1927 and 1982, of which about 128
have given material production at either the
Goudron or Lower Cruse levels, or both. Only
11 wells have previously been completed at
the Lower Cruse reservoir and these have
achieved an average production of 63,200
barrels per well. A total of 1.64 mmbbls have
been recovered from the Lower Cruse, rep-
resenting a very modest recovery factor of
just three per cent.
LGO told London investors: "No wells have
been drilled at Goudron since 1982 and wells
drilled prior to that date did not benefit from
modern instrumentation and mud condi-
tioning techniques, and this invariably, in the
past, led to significant formation damage and
resulting reduced production potential. It is
expected that the drilling practices and per-
forating guns, being employed during the
present campaign, will provide far better pro-
Upon finding the first oil pay at Goudron,
Ritson had said on May 1: "The presence of
oil bearing Goudron Sands, whilst expected
at this location, is very encouraging and the
production potential of an interval of this
thickness is already well established. GY-664
will now continue to test the full extent of
the Goudron Sands and then be deepened to
the Gros Morne and Lower Cruse in order
to confirm significant additional reservoir
potential. This is an excellent start as we
begin to unlock the 122 million barrels of
proven and probable oil still in the field."
LGO finds oil sands, still
drilling for reservoir
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