LGO Energy is increasingly focusing efforts on the South West Peninsula of Trinidad, the company has said.
Subsidiary Leni Trinidad Limited (LTL) holds an interest in all onshore private petroleum leases covering in excess of 10,000 acres of underexplored regions off the Caribbean island.
Included in the leases are several 100% owned leases, as well as a 50% interest in the Icacos Field, which produces oil from shallow reservoirs.
In addition, LTL holds a 25% interest in Beach Oilfield Limited (BOLT) which owns the shallow Bonasse Field and surrounding leases.
LTL has an exclusive right to acquire the remaining shareholding in BOLT under a Sale and Purchase Agreement announced in January.
Although the completion of the acquisition has been delayed handover operations have begun.
During the last week of April, LTL transported approximately 200 barrels of oil from Bonasse to the sales point at Point Fortin approximately 30 kilometres from the field.
This stock will sold to Petrotrin in the next few days.
LTL now expects to commence regular oil sales and to start to increase production rates by the recommissioning of existing wells and equipment at the field.
Neil Ritson, LGO’s chief cxecutive officer, said: “Increasingly LGO is focusing on its South West Peninsula assets and is looking forward to completing the licensing process and an independent resources evaluation this year.
“The recommencement of oil operations at the Bonasse Field is very encouraging and adds to the growing momentum the company has at the Goudron Field.”
LGO said technical work supporting the first phase of the Goudron waterflood enhanced oil recovery project is nearing completion and final regulatory approvals will be sought over the coming weeks.
Production from the Goudron Field in the first quarter of 2017 averaged 435 bopd.
The second quarter will benefit from the recent completion of the GY-682 and GY-683 wells and it is anticipated to see a significant improvement in production as a result.
LGO said GY-683 has now been put on rod pump at a stable average oil rate of 55 barrels oil per day (“bopd”), which remains significantly ahead of the average prognosis of 45 bopd.
However the firm added it continues to produce dry oil, strongly suggesting that it is not in communication with depleted sandstone reservoirs already produced in any nearby wells.
The earlier well, GY-682 was producing at an average of 32 bopd in the first half of April with a relatively high water cut and by contrast with GY-683 this may suggest that some of the perforated zones are affected by depletion.
Initial simple interventions to improve oil production rate were undertaken in mid-April leading to an erratic rate which has yet to stabilise.
LGO said since water handling is not an issue at the Goudron Field GY-682 will be left on pump for now and further interventions, including water shut-off, to restore stable production closer to the initial oil rate of 55 bopd will be undertaken as necessary.
LGO’s Spanish subsidiary Compañía Petrolífera de Sedano, S.L.U. (“CPS”) has been working with the Ministry of Energy, Tourism and Digital Agenda to close all relevant files associated with the previous La Lora Concession.
Once that process is completed the Hydrocarbons Department of the Ministry can commence the formal issuing of a tender for a new concession covering oil operations at the Ayoluengo Field.
Other than regular site inspections by CPS’s senior HSE engineer, no work is now being undertaken at Ayoluengo. All wells remain suspended and all oil previously produced from the field has been sold and exported. Staff employment contracts are also suspended.