By Alex MacDonald

LONDON--Trinidad-focused oil and gas explorer LGO Energy PLC (LGO.LN) said Monday it has started producing oil from its GY-277 well at the onshore Trinidad and Tobago Goudron oil field, marking the fourth well it has recently revamped to maintain production at the field.

The U.K.-listed oil firm said the well is producing oil at a rate of 34 barrels a day. The company has secured permission from its lender BNP Paribas SA (BNP.FR) to drill another five wells over the next few months at a cost of $50,000 a well to maintain production at the Goudron field.

LGO produced an average of 562 barrels of oil a day in the second quarter of the year or 51,121 barrels in total, of which 39,903 barrels came from Trinidad and the balance from Spain.

This compares with production of 430 barrels of oil a day in May from the Goudron field alone. The field reached a peak production rate of over 2,000 barrels of oil a day in early 2015. But the troubled U.K.-listed oil firm lost its GY-678 well at the field late last year, pushing it into financial difficulties. It has been in protracted debt negotiations since then.

LGO said oil stocks in Spain remain at a high level of about 10,000 barrels. It has entered price negotiations with potential purchasers while continuing sales of its Ayoluengo oil to the former Saint Gobain glass factory on a monthly basis.

-Write to Alex MacDonald at alex.macdonald@wsj.com

(END) Dow Jones Newswires

August 22, 2016 03:04 ET (07:04 GMT)