LGO Energy PLC resumes production in Trinidad as oil price rises

(MENAFN- ProactiveInvestors - UK) LGO Energy PLC (LON:LGO) has started work again at its Goudron field onshore in Trinidad after the recent uptick in the crude price.

After a financial crisis last year when the last well of the 2015 drilling campaign at Goudron got stuck down hole causing it to be abandoned it is the latest sign LGO is getting back to its feet.

Altech Rig 2 will restore production from a number of existing wells over the next few weeks to add 100 barrels per day (bopd) to current output.

Following that phase of operations several well recompletions are envisaged which will take approximately three weeks to prepare.

The wells are expected to perforate an upper C-sand interval of 180-feet of net pay previously not perforated in well GY-671 and then to perforate a 100-foot interval of Goudron sandstone net oil pay in legacy well GY-50 not previously opened.

Each operation will cost US$75000 each and by funded by LGO's Trinidad subsidiary.

Drilling contractors have been paid with shares while last week LGO arranged a debt restructuring with its bank BNP after teeing up a US$20mln funding package.

Neil Ritson LGO's chief executive said: "In light of improved oil prices and in anticipation of reduced royalty rates which we expect to be approved shortly the company has now commenced additional work designed to increase production and revenues at the Goudron Field."