Lgo-energy: VSA Capital says LGO Energy shares can rise more than 800%

LGO Energy PLC (LON:LGO) is turning the corner, according to VSA Cpaital, which has today started its coverage of the Trinidad focussed oil firm with a 'buy' recommendation. And with a lofty price target of 22p the broker suggests there's a staggering 825% upside to the current price of 2.6p. The new write up comes after a financial restructuring and a share consolidation which has allowed the company to resume investment into its assets onshore Trinidad. "LGO Energy now appears to have turned the corner and preserved its reputation as an operator in Trinidad," Vaughan said in a note. "It is now refocusing its efforts on the Goudron Field development plan and looking to capitalise on its acreage position in the South West Peninsula." At the start of this week, LGO Energy announced the start of new drilling, for the first of its new wells in Trinidad. The company this morning reports that at the Goudron field, the GY-682 well was spudded on Saturday, March 4. GY-682 is designed to access Mayaro Sandstone reservoir and is expected to be a production well. It will be drilled to intersect some 200 net feet of reservoir pay, between 300 and 1,000 feet. LGO has contracted at least two new wells, though a larger programme is envisaged. The second contracted is due to be drilling straight after GY-682.