Leni Gas & Oil (LON:LGO) today confirmed that it is going it alone with the Goudron Field in Trinidad.
It was originally conceived that Leni would sell half the project to Range once it had completed the acquisition of the asset.
However, having now secured sufficient funding for the ongoing work programme Leni says it has told Range that it is no longer seeking a partner.
"LGO has successfully funded the acquisition of Goudron and raised working capital by disposing of its Gulf of Mexico assets this week and we now feel that selling up to 50% of Goudron for US$8m would seriously undervalue the asset,” said chief executive Neil Ritson.
“LGO has the skills within the company to develop the proven and probable reserves of 7.2 million barrels and are currently focussing on that work."
Analysts believe the Goudron project has the potential to propel Leni into a ‘different league’.
The expectation is that through ongoing work-over and development work Leni can enhance output and importantly covert the ‘possible’ barrels in the 30.5 million barrel 3P reserve into the higher confidence 2P reserves.
Beyond that, it is thought the field’s potential for enhanced recovery, through techniques such as water-flooding, could unlock even more upside in the longer term.
Leni began a work-over programme at Goudron last month. Initially five wells are being refurbished and collectively it is hoped this will add 50 barrels of additional output per day, taking the field’s ‘stable rate’ production over 100 barrels a day.
If successful the programme could provide the blue-print for a more substantial campaign – as there are a total of 92 available wells on the Goudron field.