LGO today announced that a total of 556 feet will be perforated for Wells GY 672, 673 and 674. This works out to an average perforation of 185.3 feet per well.
In December, 2014, Well GY670 was perforated a total of 177 feet and delivered a flow rate of 1,085 bopd. You can roughly do the math yourself. Another factor which will come into play will be the pressure. Stronger the pressure greater the flow rates. I am optimistic however than the combined flow rate from the 3 wells will exceed 1,500 bopd which surpassed my previous estimate of 600 bopd.
LGO has also been granted the approval of 2 x 5,000 barrels tanks at the Goudron field. This will add the storage capacity to 12,750 barrels on site. The construction of the first 5,000 barrels tank will commence soon. Now, if LGO is not planning to increase production to more than 10,000 bopd in the near future, there is no need to increase the storage capacity either.
Meanwhile the new 4" is still pending the approval from other agencies to cross over existing lines. The LACT meter will be delayed until Q4. meanwhile, LGO intends to pump the oil into the exiting pipeline by having a pump facility and a new generator on site which will resolve the issue of bottlenecks.
I see the announcement as both progressive and positive.
My disclosure: I am long LGO.
No comments:
Post a Comment