CERP.L Share News (CERP)

(Sharecast News) - Trinidad and Suriname-focussed oil and gas producer Columbus Energy has submitted a drilling application for the Saffron 2 well in the South West Peninsula to the Ministry of Energy and Energy Industries of Trinidad and Tobago.
The AIM-traded firm said Saffron 2 would be drilled as a twin to Saffron 1, from the same drill pad, and would target the Lower Cruse intervals encountered in drilling Saffron 1, with a targeted total depth of 4557 feet.

It said the key objective of Saffron 2 was an extended production test, and subsequent conversion to a production well aimed to produce the circa 40-degree API oil encountered in Saffron 1.

The drilling application was consistent with its commercial arrangement for a full carry of Saffron 2, as announced 27 April, with approval of the aApplication by the ministry set to allow drilling in the third quarter.

"We are delighted to have submitted a DRL2 application to the Ministry of Energy and Energy Industries to drill the Saffron 2 well, a follow up to the Saffron 1 well drilled earlier this year," said executive chairman Leo Koot.

"Saffron 2 will be a twin to Saffron 1 and target the same Lower Cruse intervals where we discovered light, high quality oil from two test intervals.

"The logging of Saffron 1 showed over 300 feet of high-quality sands so we are very excited to test and appraise these sands with Saffron 2."

Koot said that, as the company had previously announced, Columbus had signed a term sheet with a third party drilling contractor to drill Saffron 2, subject to a stabilised oil price above $35 for a sustained period, and operating environment.

"I am pleased to note that the oil price has, in general, recovered from its recent lows in April and we are hopeful of a stabilised oil price in the third quarter."

At 1603 BST, shares in Columbus Energy Resources were down 6.15% at 1.83p.