Leni to grow export capacity

Leni Gas & Oil plc, the London-listed energy company with operations in T&T, has announced plans to more than double its export capacity. “Final approvals have now been received for the construction and installation of a new 2,000-barrel sales tank and construction contracts have been awarded,” the company said in a statement on the London Stock Exchange (LSE). 

“The new tank will be installed at the Goudron Field’s oil sales point at Tank Battery Station 134 and will be adjacent to the two existing sales tanks increasing total daily export capacity equivalent to approximately 2,750 barrels of oil per day. It is anticipated that the new tank will be commissioned to coincide with the completion of the four wells being drilled on the current well pad; of which GY-667 is the third.”

Leni will drill 30 wells on its Goudron acreage near Guayaguayare. To date, it has found “net oil pay” at all three wells drilled so far. In the oil industry, “pay” is a reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay.

“The 30 well drilling campaign continues to advance extremely well and we are making considerable progress in learning about the geology and drilling characteristics of the field. “That knowledge is being used to optimise the development and we anticipate both cost and timing efficiencies will continue to be made through the remainder of the programme. 

“The addition of an optimally specified second rig remains an objective for the third quarter,” Neil Ritson, Leni’s CEO, said in the statement to the LSE. Negotiations for a second drilling rig are “actively being progressed with a variety of different options emerging,” the statement said. Leni plans to retain Well Services Rig 20 for at least a further six wells, and no decision has yet been taken on the choice of the second rig, according to the statement.

Leni said that on Thursday it successfully spudded the fourth of its planned Goudron development wells, GY-667, at 15.30 hours T&T time, and is now drilling ahead in the Goudron sandstones. The well is being drilled as a deviated hole from the same well pad as used for the recently drilled wells GY-665 and GY-666, the company said.

Well GY-667 has a planned total depth of 3,600 feet true-vertical depth (TVD) (equivalent to 3,840 feet measured depth) to a bottom-hole location that is approximately 590 feet south east of the surface location. The company said the primary target of this well is the Gros Morne sandstones, the top of which are anticipated at a depth of approximately 2,180 feet TVD. The well will also investigate the reservoir potential of the Lower Cruse at this location.