LGO has agreed to acquire a license to a Full-Tensor Gravity Gradiometry ("FTG") airborne survey over the entirety of the onshore Southern Basin of Trinidad. This survey, which is an integral part of LGO's data gathering for its Cedros Peninsula leases is to be acquired as a multi-client survey by ARKeX Limited (ARKeX).
The Company has been a major promoter of the FTG survey concept in Trinidad where LGO believes the use of high resolution, high bandwidth gravity gradiometry data can greatly assist in improving the geological understanding in areas where 3D seismic is either difficult or expensive to acquire.
LGO holds rights to approximately 10,900 gross acres of petroleum leases in the Cedros Peninsula of southwestern Trinidad where it is currently conducting a soil geochemistry study in collaboration with Beach Oilfield Limited ("BOLT"). The Company is also integrating all existing well and seismic data prior to planning a deep (approximately 12,000 feet) exploration well to test the presence of potentially oil bearing Lower Cruse and Herrera Sandstones that have previously been successfully tested by wells offshore in the Soldado complex of oil fields. The FTG data will be deployed alongside existing data to improve structural interpretation.
The survey is likely to commence before the end of 2014 and will take approximately 6 weeks to acquire. Initial processed results will be available in the first quarter of 2015. The survey, which is open to licensing by any company, covers an area of approximately 5,700 square kilometres and will be acquired using a fixed wing aircraft flying at 120 metres over the terrain along a flight path made up of 12,800 line-kilometres. Flight lines will extend offshore to the west, south and east of Trinidad to ensure complete coverage of the land area. The aircraft will simultaneously acquire magnetic field data and also LiDAR over the land area.
The Cedros Peninsula, where LGO already has production from the shallow Icacos Oilfield, is significant as it is largely unexplored with regard to deep potential and in its proximity to the prolific East Venezuelan Basin of which the Cedros is geologically a part. The only deep onshore well, FRM-1, drilled in 2008 to a depth of 12,301 feet found oil shows in the Lower Cruse and Lengua formations at around 11,700 feet before the well was lost for mechanical reasons. The Herrera Sandstone formation was not reached. The en-echelon structures offshore at Soldado have yielded major oil fields up to over 200 million barrels and it is LGO's view that similar structures may lie onshore beneath the Cedros.
Neil Ritson, LGO's Chief Executive, commented:
"We are pleased to work with our colleagues at ARKeX to ensure that this survey is acquired. FTG has been used extensively elsewhere in the world with excellent results, but has not as yet been deployed in Trinidad. The data will complement our other data sources especially in the Cedros Peninsula. The data will also be useful in our Goudron Field where there is no existing seismic data. We have lobbied for some time for this survey to be acquired and are delighted that it will shortly be underway. Unlocking the deep exploration potential of the Cedros is a significant medium term objective for LGO and this survey is a valuable milestone along the way."
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc, who has over 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London.