Page 15 - LatAmOil Week 19 2021

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An RFT logging suite (Repeat Formation Test) President continues to pursue strategic options based on the experience of WSPC, and in par-
was also run and demonstrated original pressure for growth whether in our core business or ticular their superior ability to handle drilling
in both Vaca Muerta and Catriel formations, through our recently formed green energy busi- fluids. BPC has paid the initial mobilisation fee
opening up potential development opportuni- nesses. Whilst detailed due diligence is currently to WSPC, with no further fees payable until and
ties in this formation in the northern fault block being conducted on a number of prospects, unless the Saffron-2 well is spudded. Spud is
of Estancia Vieja. there is nothing concrete that President is able expected to occur on or around May 23, 2021,
The results are in line with expectations and to announce. Notwithstanding this and for the subject to successful completion of the current
after the current ongoing work at the new well avoidance of doubt what we can state is that in open offer and placing process, and subject to
EV-1001, the well will be completed rigless using respect of the prospects currently being consid- passage of the various resolutions that have been
the coiled tubing unit. The drilling rig will now ered, it is not currently envisaged that funding by proposed at the Extraordinary General Meeting
be demobilised back to its base whilst we review way of equity issuance would be required.” to be held on May 17, 2021.
the initial test production and pressure data of President Energy, May 10 2021 Saffron-2, Well Potential: The intention is to
these newly drilled wells. place the Saffron-2 appraisal well onto immedi-
New well LB-1002: This well has now been Bahamas Petroleum Co. ate production, with ready proximity to oil sales
placed on production and is performing better infrastructure, and expected production is in the
than pre-drilling expectations. During the initial announces Saffron-2 range of 200-300 bpd. Based on a $60 per barrel
period various choke sizes will be used to ensure oil price, this would generate cashflows to BPC of
optimum production levels whist minimising rig mobilisation and $1.8-2.6mn per annum, with a full well payback
the risks of coning. Currently the well is produc- of 12-18 months and a ROI of in excess of 200%.
ing over 48,000 cubic metres per day (1.7 mcf per operational update Saffron, Full-field Potential: Contingent on
day or 282 boepd) with an 8-mm choke from the Saffron-2 well success, an initial programme of
secondary reservoir the Centenario 5 and 6. The BPC, the Caribbean and Atlantic margin focused field development has been planned which could
primary target the Centenario 3 reservoir, has oil and gas company, with production, appraisal, see a further five to nine production wells drilled
been left for a future workover after depletion of development and onshore and offshore explora- during H2-2021 (subject to permitting, rig avail-
the currently producing reservoirs. tion assets across the region, has provided an ability and capital availability of $7-12mn, with
New well EV-1001: This new gas well has now update on the upcoming drilling of the Saffron-2 the rest anticipated to be available from opera-
been successfully completed and is currently well in Trinidad and Tobago. tional cashflow), with field development drilling
cleaning up under test with results projected Saffron-2, Operational Readiness: A number continuing thereafter, through 2022 and 2023.
after testing to be in line with expectations. of workstreams have already been completed The Initial Programme is projected to achieve
Oil and Gas prices update: The average oil to enable drilling of the Saffron-2 well to pro- an average daily production of 1,000-1,500 bpd
prices realised by President for the first five gress. This includes: Ministry approval to drill. by the end of 2021, which based on a $60 per bar-
month of 2021 are running 35% higher than Completion of a detailed well plan. Civil works rel oil price would generate annual cashflows to
average for the full year 2020. The average gas completed to establish the well pad. Purchase BPC of $8-12mn.
prices realised by President for the first five of all long-lead/major equipment items. Con- Thereafter, field development drilling would
months of 2021 are running 40% higher than for tracts entered into for all required well services continue through 2022 and 2023. The current
the same period in 2020. Spot gas as at today of and supplies, including with Schlumberger for estimated overall field development would com-
$5 per mmBtu is 100% higher than at the same cementing, wireline logging and drilling mud, prise up to 30 wells in total, with a peak produc-
time last year. With the price volatility, it is wor- with Weatherford for the liner hanger system tion projection of approximately 4,000 bpd. The
thy of note that the price President receives for and with NOV for the drilling fluid handling sys- current full Saffron field development scenario
its Salta oil has in May reached parity with that tem. Installation of the well conductor: Detailed would generate annual incremental cash flows
received for its Rio Negro production, a signifi- HSE planning, including COVID-19 mitigation for the Company in excess of $25mn.
cant positive change from that previously. and response protocols. Eytan Uliel, CEO Designate of BPC, com-
Peter Levine, Chairman, commented: “This The Company can confirm that mobilisation mented: “I am pleased to advise that rig mobili-
concludes the initial three well drilling pro- of the drilling rig to the field is scheduled to com- sation has been confirmed for the drilling of the
gramme in Rio Negro where we now turn to mence on 9 May 2021, with rig-up activities to Saffron-2 well, all major contractors and suppli-
optimising production and making the most of be completed on or around May 17, 2021. The ers are in place, and we are operationally ready
robust oil and gas prices. President does not take rig (Well Service Rig #4) is being supplier by such that drilling activity can commence around
this continued success for granted. As I have said, Well Services Petroleum Co. (WSPC), one of the May 23, 2021.
it’s the product of hard work and careful plan- oldest and largest onshore drilling companies in “A successful Saffron-2 well will be a profit-
ning in a country still hard hit by the pandemic. Trinidad. The rig was selected and contracted able well in and of itself, but more importantly
will further our understanding of the Saffron
field and enable us to plan for additional field
evaluation and appraisal work, as well as to assess
the optimal full-field development plan. In a suc-
cess case, this well can be quickly brought into
production, potentially adding 200-300 bpd of
oil sales and $1.8mn or more of annual cashflow.
A full-field Saffron development could see peak
production of 4,000 bpd and around $25mn of
annual cashflow, a material project by any meas-
ure, and one we are thus eager to get after.”
Bahamas Petroleum Co., May 06 2021

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