Challenger Energy Group has announced the successful commencement of drilling at the Saffron-2 well onshore in Trinidad.
According to the company, a successful Saffron-2 well could produce between 200 to 300 bopd.
The Saffron-2 appraisal well is a follow up to the successful Saffron-1 exploration well drilled in March 2020 that resulted in discoveries in both the Middle Cruse and Lower Cruse reservoirs. Significant lessons were learnt during the drilling of Saffron-1 to inform the drill plan for Saffron-2.
Saffron-2 is a low cost onshore well with a budget, inclusive of production completion, of approximately US$3 million, and is expected to take between 25 to 30 days to complete.
Eytan Uliel, Chief Executive Officer designate, said, "Following completion of mandatory inspection and reporting processes in Trinidad, we can now advise that drilling of the Saffron-2 appraisal well has commenced, with the well having spud on 24 May (UK time, late 23 May local time). The well will be drilled over the next 25 to 30 days, to a total depth of approximately 4,500 feet.”
According to Uliel, “The objectives of the Saffron-2 well are twofold.”
“Firstly, to produce oil and generate cash flow in its own right, with a P 50 projected production rate of 200-300 bopd and, more importantly, to inform the appropriate development plan for the Saffron field as a whole. Based on the Saffron-1 well discovery and subsequent studies, we believe Saffron is a field capable of growing to production in the range of 1,000 - 1,500 bopd by the end of 2021, and which could ultimately achieve production rates of up to 4,000 bopd in a full field development scenario,” he said.
He added that, “This is an exciting start for Challenger Energy Group, as we take the first step in our longer-term strategy of developing our existing portfolio to increase the Company's production and cash flow. I look forward to updating shareholders with results once the well has been completed."