Shares of Leni Gas & Oil (LSE: LGO) increased by 4% to 3.8p in early trade this morning — taking the oil exploration and production company to within a hair of having a £100m market cap — after revealing that well GY-668, the fifth well at the Goudron Field in Trinidad, has been drilled to a total depth of 3,026 feet.
LGO previously announced 191 feet of net oil pay in the Goudron Sandstones, while a further 254 feet of net oil play in the Gros Morne Sandstones — the primary target of the well — has been identified.
The wells, pending the necessary approvals, will be brought online one by one. The rig will subsequently be brought to the next drilling pad to commence the drilling of the next four development wells.
The chief executive, Neil Ritson, commented:
“The fifth well has been successful in meeting its objectives and the rig will shortly be moved off GY-668 and we will start the process of preparing the site for production. The pressures we have experienced during the drilling of these wells gives us considerable confidence that we will have excellent production rates.”
Shares of Leni Gas & Oil have gained 414% in 2014, steamrolling the benchmark FTSE All-Share index, which is flat year-to-date.
If you decide to ‘buy’ — based on the prospect of the continued drilling of successful exploration wells — be sure to consider whether or not you’re paying a fair or, even better, bargain price.