Broker Old Park Lane Capital says
Leni Gas & Oil “This is an excellent start as we begin to unlock the 122 million barrels of proven and probable oil still in the field.”
Broker Old Park Lane Capital says LGO is making excellent progress on the well since it was spud on Monday.
Analyst Barney Gray has a 3.3p target price on the stock, compared with the current price of 1.03p, up 14% today.
( LON:LGO) rose more than 10% after it reported success – albeit expected – at its first new well in the Goudron oilfield in Trinidad.
The GY-664 well encountered oil at depths of between 571 feet and 1,100 feet (the current well depth), and drilling is continuing. LGO expects to set the well's first casing point at around 1,540 feet, at which point it plans to run electric logs.
So far, LGO reckons it has encountered over 190 feet of combined oil 'pay' in the well. The Goudron sands are believed to be around 400 feet thick.
After logs have been run, drilling will resume to test a deeper primary target - the Gros Morne and Lower Cruse sands which are anticipated below 2,800 feet.
“The presence of oil bearing Goudron Sands, whilst expected at this location, is very encouraging and the production potential of an interval of this thickness is already well established,” chief executive Neil Ritson said.
“GY-664 will now continue to test the full extent of the Goudron Sands and then be deepened to the Gros Morne and Lower Cruse in order to confirm significant additional reservoir potential.
“This is an excellent start as we begin to unlock the 122 million barrels of proven and probable oil still in the field.”
Broker Old Park Lane Capital says LGO is making excellent progress on the well since it was spud on Monday.
Analyst Barney Gray has a 3.3p target price on the stock, compared with the current price of 1.03p, up 14% today. |
