Page 13 - LatAmOil Week 17 2020

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NEWS IN BRIEF
LatAmOil
UPSTREAM
Trinidad: Columbus
Energy’s Saffron well
discovers oil in Lower
Cruse, Middle Cruse
Columbus Energy, the oil and gas producer and explorer focused on onshore Trinidad and Suri- name, has announced that the Saffron well has discovered oil in the Lower Cruse and Middle Cruse, located on the South West Peninsula, onshore Trinidad.
The key highlights of the Saffron well are: oil discoveries in the Lower Cruse and Middle Cruse; 2,363 feet (720.24 metres) of gross sands with six reservoir intervals of interest with a 47% net/gross ratio; well reached total depth (TD) at 4,634 feet (1,412.4 metres) , as planned; six inter- vals identified for testing, with three intervals tested to date; in the Lower Cruse, high-quality light oil (circa 40 degrees API) recovered to sur- face; results in line with the Company’s pre-drill estimates for recovery of oil from a Lower Cruse development (11.5mn barrels); signed terms for a full carry of the second Saffron Lower Cruse appraisal and development well (expected Q3-2020); in the Middle Cruse, discovery of a medium quality crude (17-20 degrees API); currently producing oil from first perforated interval in the Middle Cruse; Middle Cruse oil processed on location and first 340 barrels of oil sold through existing infrastructure; preparing to test the Middle Cruse in additional oil-bearing zones; preparing individual development plans for the Middle and Lower Cruse discoveries.
Leo Koot, Executive Chairman of Colum- bus, commented: “We have found what we were looking for. The Saffron well has discovered oil in both the Lower Cruse and Middle Cruse for- mations in the South West Peninsula, onshore Trinidad. These discoveries are transformational for Columbus, creating two valuable stand-alone field developments.
“Our main pre-drill goal of establishing the existence of hydrocarbons in the Lower Cruse has been achieved, significantly de-risking what we expect will be an imminent Saffron field development. We achieved light, high quality oil flow to surface (circa 40 degrees API) from two test intervals in the Lower Cruse. For operational reasons (including prudent cost management), our testing was deliberately limited to a com- bined perforation of 16 feet [4.88 metres] even though the logging of the Lower Cruse showed over 300 feet [91 metres] of high-quality sands. As such, we believe that the appraisal of the Lower Cruse, expected in Q3-2020, will be stage 1 of a Lower Cruse development that we now
calculate has an NPV of circa $90mn.
“I am particularly pleased to share with our investors and the market that, in order to fast- track the appraisal/development of the Lower Cruse, we have signed a Term Sheet with a third- party drilling contractor to drill a second well in the Lower Cruse, the same contractor who
drilled the Saffron well.
“It is expected that the well will be drilled in
Q3-2020, subject to a stabilised oil price (above $35 for a sustained period) and operating envi- ronment. The well will be fully funded by that third party in return for a share of the production from Saffron 2.
“Whilst drilling the Saffron well, the Com- pany encountered a total of 6 intervals in the Lower Cruse, Middle Cruse and Upper Cruse that merited testing and, to date, we have tested three intervals (two in the Lower Cruse and one in the Middle Cruse).
“In the Middle Cruse, we discovered medium quality crude (17-20 degrees API) with a high water cut (circa 90-95%). The Middle Cruse res- ervoir shows good pressure support, [and] with the right completion design and field devel- opment plan, we can deliver a reliable oil and revenue stream from the multiple oil-bearing intervals we have identified. We have already sold our first oil produced from the Middle Cruse to Heritage (340 barrels).
“I am therefore confident that we will be able to produce commercial quantities of quality oil from both the Lower Cruse and the Middle Cruse.
“In the coming months, we intend to finish our testing campaign and work with our part- ner to drill Saffron 2. Alongside this, we will continue to produce from the Middle Cruse and progress a Middle Cruse appraisal and develop- ment campaign when the timing is right given
market conditions.
“I am really excited with our results to date
with the Saffron well, and I would encourage you to read the corporate and operational update and watch the accompanying video that are available on our website.”
The Saffron well was drilled in the Bonasse licence area on the South West Peninsula of Trinidad, which includes the Bonasse field. The Company is the 100% owner of the Bonasse licence area.
The Saffron well is the first well drilled by Columbus ERP as well as the first well within the Southwest Peninsula in over 11 years.
Columbus Energy, April 27 2020
SERVICES
BW Offshore announces contract extension with Petrobras for the Cidade de Sao Vicente rig
BW Offshore has received a notice from Petro- bras that they exercise their right to extend the lease and operation agreement of BW Cidade de São Vicente with 48 days. With this the contract will expire on June 11, 2020.
BW Offshore has commenced planning for demobilisation of the unit from the field and is considering temporary lay up in Brazil. BW Cidade de São Vicente commenced operation for Petrobras in 2009 and has been utilised as a well test facility for the client on multiple loca- tions offshore Brazil.
BW Offshore, April 28 2020
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