(Sharecast News) - Caribbean and Atlantic margin-focussed oil and gas producer Bahamas Petroleum Company updated the market on upcoming drilling of the Saffron #2 well in Trinidad and Tobago on Thursday, reporting that rig mobilisation to the field would begin on 9 May, targeting the start of Saffron-2 drilling on or around 23 May.
The AIM-traded firm said all equipment, including various reusable items from Perseverance-1, had been mobilised to Trinidad, along with necessary contractor personnel.
It said the design of the Saffron-2 well included a production completion, allowing for immediate oil production and sales on a successful well, with anticipated rates of 200 to 300 barrels of oil per day, which it estimated would provide more than $1.8m of cash flow per annum to the company.
Based on those pre-drill estimates, Saffron-2 would have a payback of 12 to 18 months, and a return on investment of over 200%.
Following a successful Saffron-2 well, a further five to nine production wells were planned to be drilled in the second half of 2021, as part of an overall field development of up to 30 wells.
Bahamas Petroleum said those further wells were projected to deliver average daily production of up to 1,000 to 1,500 barrels of oil per day, which it was estimated would provide $8m to $12m of annual cash flows going forward, based on an oil price of $60 per barrel.
At 1520 BST, shares in Bahamas Petroleum Company were up 8.57% at 0.34p.
8 Jun 2015 08:14