RE: Trinidad Insurance20 Oct 2020 13:50
from the BPC Interims back in June.
'In terms of profitable production growth, producing assets in Trinidad and Tobago (as at when they were incorporated into the Company consequent on the merger with CERP being completed in August) were averaging production of between 400 to 450 barrels of oil per day ("bopd"). The Company is targeting achieving a stable and sustainable production level of approximately 500 bopd (net) by the end of 2020, and programs to deliver this outcome have already commenced. This objective is, in our view, readily achievable, based upon further leveraging of the existing well stock by increasing the number of wells online. This in turn is a function of the number of workovers undertaken, and our plan is to return the annualised rate of workovers completed to that last seen in 2018. For example, in 2018 there were 180 workovers completed on the Goudron field, compared to 51 in 2019 and a similar amount completed to date in 2020. With such a heightened level of activity we will ensure that wells will remain offline for a shorter period and combined with increased operational oversight, enhanced data collection and improved pump and completion designs, equipment, materials and technology, the period between the need for workovers will be extended.
In order to extend production beyond this base target a range of other incremental production projects exist, and similarly the Company is already in action. These activities are designed to enhance reservoir pressure and hence oil recovery (through water and CO2 injection), and raise the oil recovery factor by improving reservoir access and connectivity (targeting bypassed pay, undrained reservoir compartments and reducing water cuts / sand infiltration) whilst completing well stimulations, acid washes and deviating existing well bores. All of these projects are targeting known reservoirs in already producing fields. It is the depth and range of these 'self-help' initiatives that gives us the assurance our initial targets can be met.
Beyond this, our production target builds to 2,500 bopd (net) by the end of 2021, to be realised through further evaluating and pursuing production from already known discoveries in both Trinidad and Tobago and Suriname. To this end preparatory work has already commenced on the plans for the drilling of the appraisal/development Saffron #2 well in the South West Peninsula (SWP) of Trinidad and Tobago, and an extended well test in the Weg Naar Zee licence of Suriname. '
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