Leni Gas & Oil (LGO) is to mobilise a second rig to its Goudron field in Trinidad after the second of a plethora of development wells came up trumps.
The GY-665 well has now intersected some 209.4 metres of gross oil-bearing sands in the primary target of the Gros Morne formation, the London-listed company said on Monday.
The pay was struck at between 611 metres and 821 metres and, although drilling continued to 838 metres, LGO has decided to go no further as the results so far have been so encouraging.
“Due to the high quality of Gros Morne hydrocarbon indications already encountered, the decision has been made to shorten the planned total depth of the well at the current depth and to avoid any operations risks which would be associated with deepening the well into the secondary targets and in order to accelerate the time frame to production,” the explorer said.
Shares in LGO shot up more than 26% directly after the announcement was made.
GY-665 is the second of 30 planned development wells. The first new well, GY-664, continues to produce at a steady rate and pressure.
“In the light of the results in the current drilling campaign the company has initiated arrangements to mobilise a second drilling rig to the Goudron field in order to accelerate the drilling of additional wells. Additional information on this will be provided as soon as it is available,” LGO said.
Chief executive Neil Ritson commented: "The results of these first two wells begin to validate our geological models and give the company greatly increased confidence in accelerating the redevelopment programme.
“Indications whilst drilling in the Gros Morne in the second well are sufficiently encouraging to recommend that this well be completed at that level without deepening to the secondary Lower Cruse target.”