(Alliance News) - Columbus Energy Resources PLC on Thursday said it has submitted its drilling application for the Saffron 2 well in the South West Peninsula to the Trinidad & Tobago Ministry of Energy & Energy Industries.
Saffron 2 will be drilled as a twin to Saffron 1 from the same drill pad and targeting the lower cruse intervals found when drilling Saffron 1. The target total depth for Saffron 2 will be 4,557 feet and its key objective will be to conduct an extended production test before being converted to a production well.
Columbus expects Saffron 2 to production around 40 degree API oil as seen in Saffron 1.
The drilling application is consistent with Columbus's commercial arrangement for a full carry of Saffron 2. If approved, the application would let Columbus start drilling the new well in the third quarter of 2020.
Executive Chair Leo Koot said: "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.
"As previously announced, we are pleased to have signed a term sheet with a third party drilling contractor to drill Saffron 2 subject to a stabilised oil price (above USD35 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 2020 and we are hopeful of a stabilised oil price in Q3 2020."
Shares in Columbus closed down 2.6% at 1.90 pence in London on Thursday.
By Anna Farley; annafarley@alliancenews.com
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