The Trinidad-focused oil junior is up about 400% following the success of GY-664, the first new well the group has drilled at Goudron, and the AIM-listed share was again soaring today.
The GY-665 well has intersected 687 feet of gross oil bearing sands in its primary target, the Gros Morne formation.
Such is the success, adding to the earlier find in a shallower secondary target, the company has decided to call an early end to the drilling of this well. This will avoid unnecessary operational risks and bring forward the start of production, Leni said.
A deeper secondary target, the Lower Cruse formation, will be tested in one of the subsequent three wells that are planned to be drilled from the same site.
GY-664 and GY-665 are the first two wells in a thirty well programme planned for the Goudron field, and in light of each well’s success Leni has decided to double up and send out a second rig.
Production from GY-664 came online with rates of up to 326 barrels of oil per day from the Gros Morne formation. At that level it was more than three times the volumes forecasted by analysts.
Leni says it is confident that the Gros Morne’s net oil pay in GY-665 will be comparable to that in GY-664.
"The results of these first two wells begin to validate our geological models and give the company greatly increased confidence in accelerating the redevelopment programme,” said chief executive Neil Ritson.
“Indications whilst drilling in the Gros Morne in the second well are sufficiently encouraging to recommend that this well be completed at that level without deepening to the secondary Lower Cruse target.
The results of modern electric logs acquired so far in the Goudron sandstones strongly suggest that there is greater net sand than was previously thought and this is likely to increase the previously estimated oil-in-place.
“When combined with improved drilling techniques we believe that greater potential exists in the Goudron sandstone and hence the decision to look at mobilization of a second drilling rig."
On AIM, Leni Gas & Oil topped the small cap leader board rising 25% to trade at 3.8p per share. At this level the company is valued at around £91.5mln.