LGO yesterday announced that the production testing on well GY676 and GY677 is now underway. Initial flow rates at GY676 and GY677 delivered 240 bopd and 380 bopd respectively.
GY675 had earlier delivered a flow rate of 240 bopd. This marked the combined initial flow rate at Pad 5 at 860 bopd.
On Pad 4, only well GY674 had so far reported its initial flow rates which stood at 240 bopd. GY672 and GY673 had encountered some problems, and until these are sorted out, we would not have their flow rates reported. There is oil in these to wells, but most notably the problems are related to pressure.
Together with the 951 bopd reported at the end of Q2, LGO production now stands at:
951 + 240 + 860 = 2,051 bopd.
The final well GY678 is nearing TD and we should have an announcement of the completion of drilling next week.
Meanwhile, LGO's share price continues to be weighed down by the price of crude oil. With a two day rally in crude, I am optimistic that LGO should see its share price trending north next week.
My disclosure: I am long LGO.
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