LGO Energy has agreed to acquire Tabaquite Exploration & Production Company (TEPCL), which is set to receive a licence for the Tabaquite block in Trinidad.
The company will pay $2m to acquire TEPCL from Trinity Exploration & Production.
Tabaquite block features four producing oil and gas fields which LGO intends to reactivate as well as expand via new drilling.
Located 27km from the Pointe-a-Pierre refinery, the Tabaquite block covers 7,502 acres and features Piparo, Old, New and Gas fields.
The fields are the most northerly onshore fields identified in Trinidad to date and were originally discovered in 1911.
The known fields have had about 300 original wells drilled and existing production has averaged about 25 barrels of oil per day from a small number of active wells.
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By GlobalDataLGO has identified about 30 well reactivation targets and plans to increase production significantly in 2015.
The new draft licence will have an obligation to acquire 65km of new 2D seismic data and drill one new shallow exploration well.
LGO chief executive Neil Ritson said: "The Tabaquite Fields represent excellent candidates for reactivation and whilst the fields have become non-core to Trinity, LGO’s proven ability to reactivate oil fields and successfully drill infill wells makes this acquisition a natural extension of our asset base in Trinidad.
"Operations to reactivate wells could commence as early as January 2015 and the drilling on new infill wells later that year."
