Trinidad-focused Leni Gas & Oil (LON:LGO) has begun drilling its seventh well at the Goudron Field after it confirmed last week that GY-669, its sixth well at the site, found oil.
GY-669, which forms part of a 30 well drilling site, encountered 227 feet of net oil pay and LGO confirmed on Wednesday that the seventh well, dubbed GY-670, was spudded yesterday and is drilling ahead in the Goudron Sandstones at a depth of 220 feet.
Barny Gray, oil and gas analyst at Oak Park Lane Capital said: “While drilling continues in GY-670, the seventh well in the current programme, LGO is analysing the results from well number six; GY-669.
“This well has already demonstrated the thickest net oil pay in the Goudron Sandstones to date. Coupled with reservoir pressures of up to 2,580 psi measured in the Lower Cruse, the highest seen so far, it is likely that GY-669 could be a major producer for the company.”
The firm plans to test the Goudron and Gros Morne Sandstone reservoirs to a total depth of at least 3,100 feet with GY-670, which will be deviated approximately 600 feet northwest from the surface location.
Neil Ritson, LGO's chief executive, said: “Well seven is now underway and we are analysing the results of well number six, GY-669, which is another successful well with considerable net pay.
“Reservoir pressures of up to 2,580 psi were measured near TD; the highest we have yet seen, and this may have major benefits for future production from this part of the field."
Leni Gas & Oil shares were priced at 5.35p in mid-morning trading, up 1.44%.