LGO says that its latest development well, GY-674, which was spudded on 21 May 2014, has reached total depth. Electric log interpretation from both the Goudron and C-sand intervals confirms the presence of recoverable hydrocarbons; the net oil pay in the Goudron Sandstone is estimated to be 492 feet and net hydrocarbon pay in the C-sand main target is estimated at 277 feet.
Well GY-674 is the third of seven wells currently planned for 2015. The net oil pay in the Goudron Sandstone was encountered between 520 and 1,730 feet measured depth with an estimated net pay totaling 492 feet. The oil and gas bearing C-sand interval was encountered at a depth of 2,565 feet MD and the total depth of the well was 3,458 feet MD. Net hydrocarbon bearing pay in the C-sand interval has been provisionally estimated as 277 feet. These observed net pay zones are in line with the prognosis for this well.
As planned, additional data was collected in GY-674 to assist with ongoing field development studies. A 30-foot core was taken in the C-sand interval with over 92% recovery. A series of down-hole pressure tests were also conducted in the C-sands and it is anticipated that a flow rate and build-up test will be conducted at initial flow in order to further assist with the collection of reservoir engineering data.