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'Reactivating Production' LGO makes impressive strides, reports European Oil & Gas

Operation Overview

 
Production potential has been estimated to be in the range 1,000 to 4,000 bopd

Trinidad operation now comprise of four main assets, the Goudron Field IPSC, the Icacos Oilfield, the Moruga North leases and the Cedros Peninsular leases. The Gourdon Oilfield (LGO 100%) lies between the East Moruga and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline to the Pointe-a-Pierre refinery in western Trinidad. The field was originally discovered by Trinidad Leaseholding Limited in 1927 and was largely developed in its current form by Texaco between 1956 and 1986, when ownership passed to Petrotrin and its predecessors. A field reactivation contract (Incremental Production Service Contract or IPSC) was signed in late 2009 and this contract acquired by LGO in October 2012. The Icacos Oilfield (LGO 50%) lies on the Cedros Peninsular in southwest Trinidad and is surrounded by a number of LGO’s 100% owned petroleum leases. The North Moruga leases (LGO 49%) are held in partnership with Advance Oil (Trinidad) Limited and contain the existing proven Moruga North Oilfield and a number of unexplored associated fault blocks in the central portion of the Southern Ranges.

Goudron Field (100% LGO, operator)

 
Since the start of operations in 2012 LGO has increased production from 40 barrels of oil per day to around 300 barrels per day.

The transfer of the Goudron IPSC was completed in October 2012 and production enhancement activity commenced immediately. LGO also published the results of an independent reserves evaluation of the field commissioned from Challenge Energy Limited in London.

  • The concession covers a total of 2,875 acres (11.4 sq km)
  • The existing producing zones have reserves of proven and probable reserves of 7.2 million barrels and estimated 3P reserve of 30 million barrels 
  • Contingent resrouces, potentially accessed using Enhanced Oil Recovery ("EOR") techniques, could be as high as 60 million barrels
  • The current production comes from a relatively small number of active wells out of a total of about 100 still thought to be available
  • Production potential has been estimated to be in the range 1,000 to 4,000 bopd
  • Additional undeveloped reservoirs in the Gros Morne (Upper Cruse) and Lower Cruse formations provide considerable opportunities for future reserves growth

Since the start of operations in 2012 LGO has increased production by around 7.5 times (from around 40 bopd to 300 bopd) and anticipates continuing to increase daily production as additional wells are reactivated and wells are enhanced through work-overs and improved equipment. It is anticipated that the first new field development wells will be drilled in the second half of 2013.

A water-flood project has the potential to recover up to 60 mmbbls of incremental oil from the existing field and since much of the concession is underexplored there is thought to be significant potential for additional exploration opportunities. These projects will be considered once primary production from the field has been substantially increased and the production infrastructure upgraded.

 

Icacos Field, (LGO 50%)

 

Located in the extreme southwest of the island the Icacos field is operated by the Territorial Services Group (a subsidiary of Touchstone Exploration Inc).

  • 1,960 acres, onshore producing since 1960’s
  • No available seismic
  • Recent exploration is limited to shallow horizons
  • Gross average 2012 production of about 32 bopd
  • Additional development potential and possible deeper targets

LGO also holds a number of new 100% LGO owned private petroleum leases acquired in 2011 and 2012 covering some 1,752 acres of prospective, underexplored, lands around the Icacos Field. A Private Petroleum Licence has been applied for and it is hoped that exploration studies can commence later in 2013.

Trinidad Growth Potential

 

The onshore oilfields of southern Trinidad perfectly fit LGO’s strategy of acquiring and redeveloping fields with unexploited reserves. Using new technology and making investments in work-overs, new facilities and infill wells LGO expects to substantially increase the production from its acreage in Trinidad in the next few years. Additional opportunities exist to add further assets and there is untapped exploration potential associated with each of LGO’s fields.