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Wednesday 22 January 2014

Leni Oil and Gas (LGO:AIM) Commencement of Goudron Drill Campaign: Now Set to Unlock Its Real Potential


Leni Gas and Oil announced today the commencement of their drill campaign on their 100% Goudron oilfield in Trinidad. Its a useful moment to remind my readers about the proven oil system at Goudron and just what the geology and track record of production is.
  
The Goudron field lies in the Western Pliocene Mega system containing all the fields within the Trinidad, Southern Basin which have the Morne L’Enfer, Forest and Cruse formations as their reservoirs and which lie in western onshore Trinidad and in the southern Gulf of Paria. In addition, it encompasses the fields within the other small piggy-back basins onshore south Trinidad, comprising shallow Barrackpore, Catshill, Inniss-Trinity and LGO's Goudron field.
All are characterised by the fact that the oils are re-migrated from deeper reservoired oils with many bio-degraded. 

Source Rock: This mega system, like most of the known systems in T&T, has the Naparima Hill/ Gautier as the source rock, with the principal reservoir rocks in this system being that of Cruse.

This petroleum system is to date the largest known contributor to oil production in the country having produced an estimated 2mnbbl of oil to date. 
 Source:
 The Petroleum Geology and Prospects of Trinidad and Tobago
by Krishna M. Persad Phd, President, Geological Society of Trinidad and Tobago
The Goudron Field has 2P oil reserves of 7.2 million barrels ("mmbbls") and further contingent oil reserves of 63 mmbbls, with an oil-in-place of 127 mmbbls (2P). LGO's first new well, H-18E J-7, will be drilled to approximately 4,000 feet and is targeting net oil sands of 250 feet in the Gros Morne sandstones and a further 100 feet in the Lower Cruse sandstone.
It is worth noting that Goudron is relatively under exploited when it comes to drilling, which makes this campaign by LGO all the more exciting and one which could see some really interesting results flow through, as well as oil, during 2014 and beyond.