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ExxonMobil to start drilling

operations at Sapote-1 well
at Guyana’s Canje block

Westmount Energy notes the announcement
by the Maritime Administration Department,
Guyana, dated August 25, 2021, that the Stena
DrillMAX drillship will commence drilling
operations at the Sapote-1 wellsite on the Canje
Block, offshore Guyana, on August 28, 2021.
Westmount holds an indirect interest in the
Canje Block as a result of its circa 7.2% inter-
est in the issued share capital of JHI Associates
Inc. The Canje Block is currently operated by
an ExxonMobil subsidiary, Esso Exploration &
Production Guyana (35%), with TotalEnergies
E&P Guyana (35%), JHI Associates (BVI) Inc.
(17.5%) and Mid-Atlantic Oil & Gas Inc. (12.5%) perforated and produced. and we believe that issues encountered can be
as partners. The Lower Cruse reservoir units exhibited addressed, such that the Lower Cruse can ulti-
Sapote-1 is located in the southeast of the good pressure and produced high-quality oil mately contribute meaningfully to production.
Canje Block, approximately 60 km north of the (480 API), but testing of these zones was halted We have preserved the ability to re-enter and
Campanian and Santonian Maka Central-1 due to the impact of mobile shales on the well produce the lower zones of Saffron-2 in the
stacked pay discovery, in a new depositional bore; these lower zones have been isolated from future, and we are incorporating the knowledge
setting linked to the Berbice canyon system. the currently producing horizons, capable of gained into the design of future Saffron wells.
Sapote-1 is an independent multi-layer prospect, being re-entered for future remedial actions in “Focus now turns to integrating what we have
which will evaluate several Upper Cretaceous support of production. learned from this well, to updating our resource
targets, and is potentially the largest prospect Well data and projection of aggregated well estimate accordingly, and to defining the best
drilled on the Canje block to date. Drilling of performance is being used to reassess overall way forward for the project as a whole - building
Sapote-1 is anticipated to take 60 days, with Saffron field resources and economics, with production and cashflow remains our overarch-
results anticipated in late October. work underway to determine the optimal for- ing strategic imperative. We will keep sharehold-
Following a 2018 farm-out to Total and sub- ward plan for development of the Saffron project ers appraised of material developments.”
sequent transactions, JHI is funded for the 2021 as a whole. Following inspection and formal approval of
Canje drilling campaign, including the Sapote-1 Eytan Uliel, CEO, commented: “The Saf- both the well completion and production facil-
well, and multiple additional wells. fron-2 appraisal well was successfully drilled and ities by the Trinidadian Ministry of Energy and
Westmount Energy, August 26 2021 completed in early July 2021, Challenger Ener- Energy Industries, production testing of the Saf-
gy’s first operated drilling onshore Trinidad. We fron-2 well commenced on July 23, 2021.
Challenger Energy issues have since perforated various reservoir horizons The first phase of testing focussed on the
and run production tests. Pleasingly, testing in Lower Cruse formation, where approximately
update on Saffron-2 the Middle Cruse has resulted in an economic 133 feet (40.54 metres) of various Lower Cruse
level of production thus far being achieved, and sands (at a range of depths below 4,000 feet or
production test we are working to increase production further. 1,220 metres) were perforated and flow tested.
We are already selling the oil being produced, so Pressures at surface of up to 1,400 psi were
AIM-listed Challenger Energy, the Caribbean for the immediate future the plan is to maximise observed, oil was produced naturally to surface,
and Atlantic margin focused oil and gas com- production revenues from those Middle Cruse and oil samples were collected and analysed (480
pany, with production, appraisal, development units, as well as bringing on additional produc- API). However, the well failed to clean up prop-
and exploration assets across the region, has tion from the as yet unperforated Upper Cruse erly, and sustained production was not able to
provided an update in relation to ongoing pro- units, in due course. achieved due to the continual inflow of mobile
duction testing of the Saffron-2 appraisal well. “Production tests have also proved the abil- non-reservoir formation materials (clay and
Highlights: A commercial production rate ity to flow high-quality hydrocarbons from the shale influx into the wellbore). Subsequently
(81 bpd) has thus far been established at Saf- Lower Cruse reservoir at Saffron, but we did not these zones have been isolated, capable of being
fron-2, from approximately 66 feet (20.12 achieve sustained production from these zones re-entered, remediated and produced in the
metres) of Middle Cruse reservoir units; pro- due to technical and mechanical issues encoun- future, as appropriate.
duced oil is already being sold and generating tered during those tests. That said, the Saffron A next phase of production testing focused
immediate revenues for the Company. project is in a tectonically active province, so on the Middle Cruse formation where 66 feet
To maximise near-term production income challenges are to be expected, and each well (20.12 metres) of various Middle Cruse sands (at
additional clean-up, testing, and optimisation builds on the learning from the previous wells. a range of depths below 1,300 feet or 396 metres
of producing zones is currently underway; the The key point is we have shown that there are and above 4,000 feet or 1,220 metres) were per-
Upper Cruse reservoir units also remain to be moveable hydrocarbons in the Lower Cruse, forated and flow tested.

P14 www. NEWSBASE .com Week 34 26•August•2021