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Just wondered as some people are doing a comparison to S1 and S2 and ceg website states
Current Production Saffron 1 free flow but with no production completion
So does this mean S1 is not producing any oil.
They state Goudron is producing 220 to 250 bopd so strange S1 has no production flow.
Wish they had published results on time as all would be clear for shareholders.
S-1 wasn't properly logged in the first place. they had to run a cased hole log which gave them vague results at best:
"the middle section, to intersect and assess deeper Middle Cruse sands (these being zones previously intersected in the Saffron-1 well, encountering hydrocarbons, but which were not able to be logged and produced from the Saffron-1 well), and
-- the lower section, to intersect and assess the previously unproduced Lower Cruse sands (as with the middle section, these zones were intersected in the Saffron-1 well but were not able to be logged and produced from the Saffron-1 well). "
I don't see what's so surprising about having a casing point in sandstone, its certainly better than having it in a mobile swelling shale that's for sure. Neither the MC nor LC were properly logged or tested therefore it was pretty much guess work what they needed to perforate. So it'll be interesting to see if CEG have isolated the oil zones from the water. But in the mean time it seems it won't stop the guessers guessing. For holders it'll be interesting to see what the logs show for the LC between 3850 and 4500ft.
Single figures I suspect - average since it came online may even be single figures. Someone posted the data a while back and you have to do some guesswork on how much is Saffron 1 and how much is other Bonasse wells, but S1 certainly isn’t going to pay for itself anytime soon!
Does anyone know exactly how many bopd S1 is currently producing.
Yes it's useful to make a comparison between S1 and S2 since they are both drilled from the same pad and S2 is essentially an attempt to circumvent the problems encountered by S1 at Lower Cruse.
It's notable to remind that , "In the Middle Cruse, we discovered medium quality crude (17° to 20° API) with a high water cut (circa 90%-95%)". The high water content will undoubtedly have impacted lifting costs at S1 as 100 barrels of fluid will only produce circa 5 barrels of oil after separation.
Good find. As you say, a rather glaring disparity when you expect S2 to essentially be a properly drilled twin of S1, apart from being slightly downdip to target a supposedly larger thicker section of the reservoir. Sounds as if it all now hangs on the Lower Cruse which needs to come in big style. At this end of the AIM spectrum there is always that nagging suspicion that they are selling you a pup.
No, we find out the final net pay data. You will have at least a further couple of weeks to wait for oil data.
well currently drilling at approximately 3,850ft against a target depth of 4,557ft
So next week we will find out how much oil they have found
Ooh - look what I found: Columbus' April 2020 presentation with much more detail on the net/gross. http://www.publicnow.com/view/3628E505B2E1344FB5FC733C3D17D45D2070C357
So in the upper section to 1,593ft, S2 found 145ft net. S1 found (intervals 1&2) 395ft net.
In the middle section to 2,804ft, S2 found 20ft net. For S1 that covers interval 3 - 136ft net, and about a third on interval 4 - so perhaps another 100+ft. Seems strange to cement a drill string in a sand interval, but certainly not my expertise.
So the upper and middle sections do look disappointing to me. The disparity is rather glaring that you've got to question the accuracy of Columbus' results.
On the plus side, S1 found net 200ft in the Lower Cruse starting at 3760ft depth. That implies at 3850ft for S2 they've got through the Detachment Surface which felt like a big operational risk to me. But I'm not going to rush to trust Columbus' net 200ft logging data.
Yes highly relevant to look back at the RNS releases and also the youtube clip of Kooty gushing about Saff-1 from 27th April 2020. He did say there was high pressure down there and showed the well trying to produce through a column of drill fluid. He did mention that there was a troublesome area at around 3500ft. CEG has mentioned that the oil based fluid that they're using did get past the swelling shales around the middle Cruse, now at 3800ft current depth they're now through Kooty's problem area at 3500ft and drilling ahead towards the primary LC. So thing much as expected for a well drilled right beside the Saff-1 Disvoery.
Should be an interesting update around the 23rd if they also twin what CERP discovered in the LC. The fact that they're past the 3500ft zone is a relief for sure, the highest risk for me wasn't whether they'd find oil under pressure its more than they could get tech/mech issues with those shales. Seems like the well plan was the right one so far. fingers crossed for a TD and logged and cased LC next week.
Fair enough, that does suggest there is significant net pay still to come.
Leo Koot, Executive Chairman of Columbus, commented:
"We have found what we were looking for - the Saffron well has discovered oil in both the Lower Cruse and Middle Cruse formations in the South West Peninsula, onshore Trinidad. These discoveries are transformational for Columbus creating two valuable standalone 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° API) from two test intervals in the Lower Cruse. For operational reasons (including prudent cost management), our testing was deliberately limited to a combined perforation of 16' even though the logging of the Lower Cruse showed over 300 feet 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 US$90m.
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 US$35 for a sustained period) and operating environment. 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 Company encountered a total of 6 intervals in the Lower Cruse, Middle Cruse and Upper Cruse that merited testing and, to date, we have tested 3 intervals (2 in the Lower Cruse and 1 in the Middle Cruse).
In the Middle Cruse, we discovered medium quality crude (17° to 20° API) with a high water cut (circa 90%-95%). The Middle Cruse reservoir shows good pressure support, with the right completion design and field development 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 bbls).
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 partner to drill Saffron 2. Alongside this, we will continue to produce from the Middle Cruse and progress a Middle Cruse appraisal and development 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. "
Compare with S1 ...
Mon, 27th Apr 2020 07:00
RNS Number : 8833K
Columbus Energy Resources PLC
27 April 2020
27 April 2020
COLUMBUS ENERGY RESOURCES PLC
("Columbus" or the "Company")
Saffron Discoveries - Lower Cruse and Middle Cruse
Columbus, the oil and gas producer and explorer focused on onshore Trinidad and Suriname, is pleased to announce that the Saffron well has discovered oil in the Lower Cruse and Middle Cruse, located in the South West Peninsula, onshore Trinidad.
The Company has made a Saffron oil discovery presentation and video available on its website. The presentation also includes a corporate and operational update. To view them, please visit https://columbus-erp.com/investors/reports-and-documents/ and https://columbus-erp.com/news/videos/
The key highlights of the Saffron well are:
• Oil discoveries in the Lower Cruse and Middle Cruse
• 2363 ft of Gross sands with six reservoir intervals of interest with a 47% Net/Gross ratio
• Well reached Total Depth ("TD") at 4,634 feet, as planned
• 6 intervals identified for testing, with 3 intervals tested to date
• In the Lower Cruse, high quality, light oil (circa 40° API) recovered to surface
• Results in line with the Company's pre-drill estimates for recovery of oil from a Lower Cruse development (11.5mmbbl)
• 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° to 20° API)
• Currently producing oil from first perforated interval in the Middle Cruse
• Middle Cruse oil processed on location and first 340 bbls 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
More waffle today, the only thing that matters is what this well can produce in the end. Mind the dilution….
Cperkin/Chambers: Thanks. It's a nice little bonus and we haven't even got to the mega target yet. Brill
"Initial petrophysical analysis of the top two sections of the Saffron-2 well indicates 165ft of net oil-bearing reservoir sands. Whilst these sections are not the primary targets of the well, it is encouraging that the well has already demonstrated production potential. Drilling continues towards the primary Lower Cruse reservoir targets, where the ultimate producibility of the well will be determined. I look forward to advising further on completion of drilling."