Saffron and SWP info11 Oct 2020 09:17
Saffron - The Pmean STOIIP for the Lower Cruse 77mmbbl, with recoverable volumes from a development of 11.5mmbbl. NPV10 circa US$88m. This prospectivity has been validated by EPI Group, the independent geological and geophysical consultancy company. 25 sept 2019. Saffron 1 recovered 40° API oil from lower cruise but exceptionally high pressures and drilling through the crumpled fault lines meant extra heavy drilling fluid was used which effected test results and the completion of the well in the lower cruise depths where the 40° API oil was recovered from.
https://m.youtube.com/watch?v=Nmn8Nk0MA9I it is worth watching all of it but the money shot if from 5:45 (If link doesn’t work search you tube for CERP - April 2020 - Leo Koot interview: Saffron Discovery & Corporate Update)
Saffron 2 - to be drilled as a twin to Saffron 1, from the same drill pad. Saffron 2 to target the Lower Cruse intervals encountered in drilling Saffron 1, with a targeted Total Depth of 4557 feet. The key objective of Saffron 2 is an extended production test and subsequent conversion to a production well aimed to produce the circa 40° API oil encountered in Saffron 1.
Leo Koot, Executive Chairman of Columbus, commented:
"We have found what we were looking for - the Saffron well has discovered oil in both the Lower Cruse and Middle Cruse formations in the South West Peninsula, onshore Trinidad. These discoveries are transformational for Columbus creating two valuable standalone field developments.
Our main pre-drill goal of establishing the existence of hydrocarbons in the Lower Cruse has been achieved, significantly de-risking what we expect will be an imminent Saffron field development. We achieved light, high quality oil flow to surface (circa 40° API) from two test intervals in the Lower Cruse. For operational reasons (including prudent cost management), our testing was deliberately limited to a combined perforation of 16' even though the logging of the Lower Cruse showed over 300 feet of high-quality sands. As such, we believe that the appraisal of the Lower Cruse, expected in Q3 2020, will be stage 1 of a Lower Cruse development that we now calculate has an NPV of circa US$90m.
I am particularly pleased to share with our investors and the market that, in order to fast track the appraisal/development of the Lower Cruse, we have signed a Term Sheet with a third party drilling contractor to drill a second well in the Lower Cruse, the same contractor who drilled the Saffron well. It is expected that the well will be drilled in Q3 2020, subject to a stabilised oil price (above US$35 for a sustained period) and operating environment. The well will be fully funded by that third party in return for a share of the production from Saffron 2.
The wider South West Peninsular - A risked portfolio has been generated consisting of over a dozen shallow and deep prospects and leads. These range in size from an estimated 20mmbbl up to 400mmbl.
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