LGO Energy begins drilling new well development

Oil and gas group LGO Energy has begun drilling its flagship Goudron field's 12th development well, the first on its pad 5 site.

The GY-675 well will be drilled 3,700 feet deep and will target the C-sand reservoir, as well as Gros Morne sandstone's upper C-sand, which are expected to be hit at roughly 1900ft. Both have a confirmed presence of recoverable hydrocarbons.

"The rig is now on drilling pad 5, and we are expecting to drill four wells from this pad," said Chief Executive Neil Ritson."

"Simultaneously, we are commencing completion operations on the last three wells of the program at pad 4 and expect to report on those shortly," he added.

As of 12:30 BST, LGO Energy was trading 5.4% lower at 3.7p.