Leni Gas & Oil (LSE: LGO), the junior oil explorer, announced that the fifth of its planned development wells has been successfully spudded-in at its acreage in Gourdon, Trinidad. The well, GY-668, is now drilling ahead in the Goudron sandstones, with a planned total depth (TD) of 3,000 feet.
LGO hopes to substantially increase production at its Trinidad acreage in the next few years. Once drilling has been completed at GY-668 — the last planned well from this drill site — attention will shift to four new wells at a third drill site.
“As we become more familiar with the geology and sub-surface conditions the drilling of wells at Goudron is becoming progressively more routine,” said Neil Ritson, chief executive of Leni Gas & Oil.
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The primary target of GY-668 is the Gros Morne sandstones and LGO expects to see “excellent production” at the wells on the first pad, having so far exceeded pre-drill expectations. Analysis has revealed a total of 984 feet of net oil play in the Gros Morne Sandstone at the wells drilled to date and, upon completion of the project, LGO hopes to have 30 new development wells operating at Goudron.
Shares of Leni Gas & Oil rose by 3% in early trade, taking gains in 2014 to 384%, which makes the firm the second biggest riser on the AIM market. The company is among the most widely tracked by retail investors, but have to sharpest among us already called the top for the shares? That’s always a danger, so be sure to tread carefully.
