LGO Energy's Goudron well reaches target depth

The company said electric log interpretation from both the Goudron Sandstone and C-sand reservoir intervals confirmed the presence of recoverable hydrocarbons.

Chief executive Neil Ritson said: “Well GY-678, the seventh C-sand well this year, was targeting an area of anticipated thicker sandstone development and has successfully located a similar section to GY-670, which was drilled and completed late in 2014 and has subsequently produced over 105,000 barrels oil to date. This new well has found that same thick sand package and will now be completed for production."

LGO said it continues to evaluate options for further short-term drilling of wells specifically targeting the oil bearing Goudron Sandstone reservoir and now anticipates finalising planning of a Goudron Sandstone drilling program before end year.

At 1223 BST, LGO shares were up 5.7% at 1,4225p.