Trinity Exploration has confirmed the Jacobin-1 oil discovery in the Palo Seco area. The company has stated that over 290 feet of net oil pay was encountered in the Jacobin well, including 63 feet of net oil pay in the deeper exploration targets.
While production volumes are still to be determined, the news of the exploration success will be welcomed in Trinidad & Tobago, where oil production has been declining for many years. In an attempt to attract new investment in Trinidad’s mature oil sector the Government responded to industry advocacy in 2022 and made some changes to the tax regime to improve project economics and attract investment in oil production. These changes included making permanent the previously temporary measure to raise the threshold price at which windfall Supplemental Petroleum Tax (SPT) comes into effect for small onshore producers (defined as companies producing less than 4,000 barrels per day). Other changes introduced last year also included a new lower sliding scale SPT for production from new offshore wells. While these changes were welcome by the industry and helped attract investment from companies like Trinity, there has been a continued call for further reforms to encourage new investment in mature fields and the infrastructure needed to safely increase production.
The Jacobin-1 well was spudded on 15 May 2023 with an objective to appraise and explore the potential of Lower Cruse sandstones within the Palo Seco area of the prolific Southern Basin.
According to Trinity, drilling samples, wireline logs and pressure testing indicate that the well encountered significant reservoir and hydrocarbon accumulations in the Lower Forest, Upper Cruse and Lower Cruse. The exploration section of the well encountered net reservoir thicknesses varying between 45 to 190 feet. An aggregate of 63 feet of net hydrocarbon pay was identified in the deeper exploration section of the well. Reservoir pressures appear to be high (up to 7,500psi) and indicate virgin pressures.
In addition, and as previously announced, 228 feet of net pay was found in the secondary target section, adding to the commercial attractiveness of the well.
Data acquired from the well are being analysed further by Trinity's reservoir and petroleum engineering teams through dynamic modelling to design an optimal completions strategy for the stacked pay encountered within the exploration section.
The well has been cased to 10,021 feet and is being prepared for a series of production tests that is likely to commence with the deepest oil-bearing reservoir, and first production is expected during September. This timeline is driven by the demobilisation of the drilling rig from the site and installation of a heavy-duty workover rig to run the completion, perforate and tie the well into production facilities. A further update on production rates, fluid properties, as well as future plans will be provided at that time.
The Jacobin results validate both the structural and stratigraphic model demonstrating the existence of a deeper turbidite play across Trinity's entire Palo Seco area, and the recently awarded Buenos Ayres block. The integration of the onshore 3D seismic over the Lease Operatorship blocks purchased in 2021 has been key to the understanding of the sub-surface. Data from the well will now be used to de-risk and re-rank the remaining "Hummingbird" prospects across the Palo Seco blocks and those recently mapped within the Buenos Ayres block.
Jeremy Bridglalsingh, Chief Executive Officer of Trinity, said, "This is a very significant and material achievement by the Team. To find virgin oil in our mature acreage points to a step-change in our understanding of the hydrocarbon system, the remaining resource potential and how we can approach the exploitation of these resources.
"I would like to congratulate the Trinity Team on this success. We have demonstrated a true competitive advantage by the hard work in, building our geological understanding, working through the many aspects of planning and delivering a complex well and critically, safe execution of drilling operations.
"I would also like to thank our partner Heritage, for their valued help and assistance in facilitating the drilling of this well. The next step is to undertake a full production testing programme, that is expected to commence during September. We look forward to updating shareholders on our progress."