Under the agreement, LGO will acquire Fram Exploration (Trinidad), the company holding the incremental production service contract (IPSC) for the Petroleum Company of Trinidad and Tobago owned Trinity-Inniss field, which covers an area of 810 acres.
Currently, the field produces between 140 and 150 barrels of oil per day (bopd) from about 25 active wells.
LGO chief executive Neil Ritson said: "This transaction will, subject to the conditions being satisfied, add approximately 150 barrels of oil per day to LGO Trinidad’s current production and we see many similarities between Goudron and Trinity-Inniss, and the scope for rapid production improvements.
"Although our current focus is the drilling of new well developments at Goudron, we would be able to quickly transfer Goudron’s work-over expertise and some of the work-over equipment to Trinity-Inniss to significantly increase the Field’s oil production from 150 bopd."
LGO said it has identified about 20 well reactivation targets at Trinity-Inniss and there is already certification for 12 new wells to be drilled as well as 50 sidetracks and/or replacement wells.
The stock tank oil originally in place at the new field has been estimated at 68 million barrels with a possible upside of about 200 million barrels.
