Leni Gas & Oil PLC Begins Drilling At Fifth Goudron Well

Leni Gas & Oil PLC (LON: LGO) continues to exploit Goudron field with further opportunities at a new drill site.

Mark Stones

Mark Stones (TMFMumbojumbones) joined The Motley Fool in 2014 and initially worked as a writer for Fool.co.uk, before joining the Fool’s analyst programme. Mark earned a BA in English from Loughborough University. Although he spends more time reading annual reports than Russian literature these days, he still appreciates a novelist’s antipathy toward the accepted view, which is a useful attitude when trying to sniff out hidden gems on the stock market. His approach to investing has been largely influenced by the principles of Warren Buffett and Peter Lynch. He also takes a special interest in the work of healthcare companies. Outside of investing, Mark plays guitar, enjoys good writing and has a guilty passion for combat sports.

Published 11 August, 2014 11:10 am BST

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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.

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.