Gulf Oil and Gas accountACCOUNT

LGO Energy Provides Financing & Goudron Field Update

Source: www.gulfoilandgas.com 6/14/2016, Location: South America

LGO and its lending bank, BNP Paribas (BNPP), have reached a further agreement on the terms of the loan outstanding to LGO's wholly owned Trinidadian subsidiary, Goudron E&P Limited (GEPL), which operates the Incremental Production Service Contract for the Goudron Field in Eastern Trinidad. Under the terms of the revised agreement GEPL will be able to utilise the equivalent of US$537,000 in Trinidadian Dollars (TT$) in GEPL's business, on expenditure including capital projects in the Goudron Field, where five further recompletion opportunities have been prepared.

LGO has agreed to pay US$896,000 to BNPP as an accelerated repayment on the loan which includes the scheduled July and August 2016 payments and a further pre-payment of US$217,000. The TT$ funds which will be available for use in the Goudron Field result from the ongoing cash flows of GEPL, including VAT returns associated with prior periods, and can be deployed without increasing indebtedness. Following these payments the net loan outstanding to BNPP will stand at US$3.4 million which remains at call.

The Company had identified seven recompletion targets in the Goudron Field earlier in 2016 and has so far been able to complete two of these; GY-671 and GY-50, with positive results. The additional funding made available under this new arrangement will allow that program of recompletions to be continued over the next few months at a rate of approximately two wells per month. Approvals for recompletion work are being sought on a well by well basis and further announcements will be made as the program proceeds. The next of the planned interventions is in well GY-673 and is expected to involve the recompletion of 105 feet of Mayaro Sandstone reservoir not previously opened for production.

Production at the Goudron Field for the month of May is estimated to be 430 barrels of oil per day, 8% higher than in April, as a result of recompletion work carried out to date and increased downhole maintenance on which the Company embarked in April 2016.

Neil Ritson, the Company's Chief Executive, commented:

"LGO continues to work closely with BNPP to ensure the optimum deployment of capital to production operations. As previously announced we anticipate commencing a program of drilling new Mayaro Sandstone wells as funding becomes available. We have identified up to 70 low risk infill targets in the shallow Mayaro sands that will greatly increase production whilst we complete the planning for the long term water flood EOR project on the deeper C-sands. In the interim, the recompletion of further legacy wells and the opening for production of intervals in wells drilled in 2014 and 2015 will further enhance returns."

Financials and Investment News in Trinidad and Tobago >>

Australia >>  6/5/2020 - Global Petroleum Limited (Global) announces that it has formally applied to ASX Limited (ASX) requesting the removal of the Company from the official ...
Russia >>  6/5/2020 - PJSC Tatneft published on its web-site the unaudited consolidated interim condensed financial statements (the Financial Statements) for the three mont...

United Kingdom >>  6/5/2020 - Reference is made to Borr Drilling Limited's ("Borr Drilling") (BORR) (OSE: BDRILL) stock exchange notices dated May 20 and May 21, 2020. ...
Argentina >>  6/4/2020 - President Energy Plc, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina , ...

United Kingdom >>  6/4/2020 - UK Oil & Gas PLC plans to carry out the following material actions designed to further strengthen the Company's overall financial and oil production p...
Argentina >>  6/3/2020 - Transaction Highlights: ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Trinidad and Tobago Oil & Gas 1 >>  2 | 3 | 4 |

Oil & Gas Projects in Trinidad and Tobago >>

More News

Related Links

Gulf Oil and Gas
Copyright 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.