Each of the initial two wells is planned to a total depth of over 3,500 feet and each will target known productive intervals.

LGO chief executive Neil Ritson said, "We are delighted that the next phase of our field re-development at Goudron is about to get underway."

"Drilling of new wells will result in a greatly accelerated increase in oil production. We have so far reactivated 58 wells of the 90 or so available wells and we are on schedule to bring on stream a further 10 wells by early 2014," Ritson added.

A drilling contractor has been selected and other services are being contracted at this time. The chosen rig is currently undergoing upgrade work and is expected to be available to commence operations at Goudron in the new year.

Following the drilling and completion of these additional wells the full implementation of the 30 well field redevelopment programme will, subject to financing, be initiated in 2014.