Petrotrin has laid the majority of a new 4 1/2 inch pipe to ugrade existing 2 7/8 inch pipeline from Goudron Field. Now awaiting a pipeline crossing agreement between Petrotrin and the owners of the major gas pipelines lying just outside Goudron Field boundary to complete tie-in.
Substantial progress also being made with the instalaltion of the new 5,000 barrels storage tank and the LACT meter to assist in the long-term efficient operation of the field.
LGO intends to conduct approximately 12 well recompletions in existing pumped wells over the coming months. This recompletions will offer additional production capacity. This includes the perforation of 275 feet of known C-Sand reservoirs and 955 feet of existing Goudron Sandstone reservoirs.
Once the wells on Pad 4 have been drilled the rig will be moved to Pad 5 where four further wells will be drilled. preparations also being made for the drilling of up to 10 further wells from pad 6 and 7.
All the above will add to existing production for sure. This is why I maintain my BUY position.
But the future of LGO lies in the Cedros Peninsula which is smack in the middle of the rich Venezuelan Basin. LGO has more than 10,000 acres of land in the peninsula. Just off the coast of the peninsula, reserves of up 200 million barrels of oil have been discovered. This is the gorilla in the room.
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