Columbus Energy enters Suriname with signing of production sharing contract

(Sharecast News) - Trinidad-focussed oil and gas explorer and producer Columbus Energy Resources announced the signing of a production sharing contract with Staatsolie Maatschappij Suriname on Friday, for the Weg Naar Zee Block, onshore Suriname.
The AIM-traded firm described Weg Naar Zee as an onshore block, with a discovered resource of 24 million barrels in a proven hydrocarbon province.

It said it was a large block, consisting of around 900 square kilometres, with exploration potential, and added that there was no signature bonus or upfront consideration as part of the agreement.

The company could control the timing of appraisal and development work, with the three-year phase 1 exploration period consisting of geological and geophysical studies, and two extended well tests.

It said the block was suitable for the application of enhanced oil recovery techniques, as used by Columbus in Trinidad, and added that the deal was complementary to its existing operations, and was on-strategy.

"The company is delighted to have signed the production sharing contract with Staatsolie for the Weg Naar Zee block, onshore Suriname," said Columbus Energy Resources executive chairman Leo Koot.

"Staatsolie have been seeking partners with experience in onshore field developments with secondary and tertiary recovery experience to commercialise the discovered oil resources.

"Columbus's experience in Trinidad will perfectly complement the existing Staatsolie oilfield production operation experience in Suriname."

Koot thanked Staatsolie for its "support and assistance" in signing the production sharing contract, and said he was "looking forward" to working with them to make the block a success for both parties.

"For Columbus, WNZ is a low cost, low risk entry into a block with an estimated 24 million barrels in a proven hydrocarbon province, close to existing infrastructure.

"Provided the results from the extended well tests are as expected, the company intends to fast track the development of the WNZ oil discoveries."