Challenger Energy Group PLC - Caribbean and Atlantic margin focused oil & gas company - Says logging of the Saffron-2 well in Trinidad has been completed and confirmed 300 feet of net oil bearing reservoir sands. Says well completion activities are underway and production testing of the well is on track to commence on or around July 23.
Says logging measured over 1,400 feet of gross reservoir sands across the Upper, Middle and Lower Cruse formations. In the Lower Cruse, the primary reservoir of interest, the well encountered 63 feet of net oil-bearing reservoir sands and a further 70 feet is potential is also indicated. The well, in the South-West Peninsula of Trinidad is a twin of the Saffron-1 well, and encountered similar Upper, Middle and Lower Cruse reservoirs to Saffron-1. The expectation (based upon the Saffron-1 discovery well) is of production rates in the range of 200 to 300 barrels of oil per day.
Challenger Energy also enters term sheet for convertible loan note funding of up to USD17.5 million with Arena Investors LP.
Chief Executive Officer Eytan Uliel says: "In terms of funding, known production capacity translates to de-risked cashflow potential that can sustain less dilutive sources of capital. In this regard, we are pleased to have taken the first tangible steps, by entering into a term sheet with a leading provider of debt and hybrid-debt capital to energy companies.
"We are working to conclude a funding on mutually acceptable terms, with a view to having capital available once we have production data from the Saffron-2 well and have been able to assess development options and schedule for a broader Saffron development. I look forward to updating shareholders of our progress."
Current stock price: 2.30 pence
Year-to-date change: down 15%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Challenger Energy (CEG)