The Company is pleased to announce the results of the latest annual independent resource review of the LGO 100% operated Goudron Field ("Field") in southeast Trinidad conducted on the Company's behalf by Deloitte LLP ("Deloitte"). Volumes in all reserves categories; proven, probable and possible, have increased, as well as the estimated oil in place within the Field which has risen by over 20 percent. Estimated oil in place ("STOIIP") within the Field has increased since the 2015 independent review and is now reported to be up to 975 mmbbls. Gross proven and probable (2P) reserves of 11.79 million barrels of oil ("mmbbls") have been estimated, up 4 percent on the previous estimate. Proven reserves have increased by 22 percent in the last year once production of 240,000 barrels of oil, produced between the publishing of two reports, is accounted for.
Neil Ritson, LGO's Chief Executive, commented:
"This latest resource report confirms the very significant potential of the Goudron Field, with resource volumes increased in all areas from those reported in the 2015 assessment. The Company is working hard to continue development of the Field and the planning for a campaign of cost-effective wells targeted at the shallow Mayaro Sandstone reservoir is already well advanced."
Data gathered during the 2015 drilling campaign and additional technical work incorporating production data from wells drilled in 2014 and 2015, as well as the numerous older legacy wells, have been used to update both static and dynamic models of the field which were then audited by Deloitte's Resource Evaluation & Advisory team in Alberta, Canada.
Estimated oil in place ("STOIIP") within the Field has increased since the 2015 independent review and is now reported to be up to 975 mmbbls. The majority of the 21% increase relates to a thickening of the C-sand and pre-Cruse reservoir unit which is observed in logs of wells drilled during the 2015 campaign, notably well GY-678. The increased STOIIP is especially important in the context of a waterflood enhanced oil recovery ("EOR") project at Goudron which is currently at a planning stage.
Proved (1P) gross oil reserves in the Mayaro Sandstone and C-sand reservoirs has increased by 3% to 1.58 mmbbls, which when adjusted for production of 240,000 barrels represents a 22% increase in proven reserves when compared to the June 2015 resource report. The gross proven and probable reserves (2P) have increased by 4% to 11.79 mmbbls. Proved, probable and possible reserves (3P) have increased by 9% to 25.60 mmbbls.
The first resource report commissioned by LGO prior to acquiring the field in 2012 reported incremental estimated gross upside (3C) contingent resources of 63.20 mmbbls, related to a future EOR scheme. The 2015 report performed for the Company by LR Senergy did not consider contingent resources, however, the present Deloitte report includes a gross 3C estimate of 63.40 mmbbls, which is very close to the 2012 estimate and again confirms the significant potential inherent in the planned EOR phase of the development.