The oil and gas exploration and production company said the shares were placed at a price of
The company said the cash proceeds also will be used for necessary capital for its overall expansion plans in
"Drilling work at Goudron is continuing to plan, and we anticipate being able to move a work-over rig to the Trinity-Inniss Field immediately after closing the acquisition," Chief Executive
On Wednesday, LGO said it signed a deal to acquire
The Trinity-Inniss Field covers an area of 810 acres and is roughly 20 kilometres from the Goudron Field. Its existing production averages between 140 and 150 barrels of oil per day from roughly 25 active wells.
LGO has already identified roughly 20 well reactivation targets, and there is considerable infill drilling potential within the field area, it said. The stock tank oil originally in place at the new field has been estimated at 68 million barrels with a possible upside of 200 million barrels.
The company is currently developing the Goudron Field nearby and has recently started drilling the GY-667 well, which is the fourth of a new development plan on site, after the first three found oil, and the first well reached a stabilised production rate of 240 barrels of oil per day in early June.
On Thursday, LGO said the GY-667 well has reached 1,530 feet in depth and is nearing its first planned casing point at roughly 1,900 feet.
The company said it has already seen indications of significant net oil pay in the Goudron Sands region with extensive oil shows being reported from mud logging.
The primary target for GY-667 is the Gros Morne Sandstone, which is anticipated to start at around 2,300 feet. Further news on Goudron drilling is anticipated in the next week, LGO said.
Most Popular Stories
- Prosecutor to Investigate Walmart Police Shooting
- GM to Announce New Jobs in Tennessee
- Mark Sanchez Suddenly a Hot QB Commodity
- Smith & Wesson Misses Target
- Emirates Hit Libyan Targets With Airstrikes
- Michael Brown Funeral: Can Americans Change the Script of Violence?
- Marco Rubio Warns Obama on Deportations
- American Killed With ISIS Fighters in Syria
- Surf's Up! SoCal Prepares for Big Storm Surf
- Ford Hires 300 at Louisville Lincoln Plant