Trinity Regulatory News (TRIN)

13 March 2012

Bayfield Energy Holdings plc

("Bayfield" or "the Company")

Trinidad and Tobago Discovery

Bayfield Energy, (AIM: BEH), an independent oil and gas exploration and production group with key assets in Trinidad and Tobago, is pleased to announce that its first exploration well in the Galeota Licence, EG8, has been suspended as an oil and gas discovery having reached a total depth of 8,133ft (2,479m). EG8 is located 930m east of a previous discovery, well EG2, which was drilled in 1978 and tested oil and gas. 

EG8 was deviated from its surface location towards the south west in order to target the crestal area of mapped horizons in the prospective EG2/EG5 Central fault block. The well encountered ten hydrocarbon-bearing sandstone reservoir zones between 1,364ft (416m) and 6,000ft (1,829m) below mean sea level. Preliminary analysis indicates that the vertical thickness of net hydrocarbon-bearing sands totals 421ft (128m) of which 352ft (107m) is gas and 69ft (21m) is oil. A comprehensive programme of logging and sampling has been conducted and samples of oil were collected in the oil zone and a mini drill stem test (mini-DST) was conducted on wireline. The data confirms light oil and good quality reservoir with production potential of over 1,000 barrels of oil per day. Samples of gas and gas condensate were also collected in other reservoirs.

Bayfield is currently integrating the new well data into the 3D seismic mapping to study the impact on contingent and prospective resources. Management believes that EG8 has demonstrated development potential of 32 million barrels (Mmbbls) of oil and 69 billion standard cubic feet (Bscf) of gas in the EG2/EG5/EG8 Central and East fault blocks. Initial interpretation suggests that substantially all of the gas potential lies within the Galeota Licence though the oil potential extends into an adjacent licence in which Bayfield has no participating interest.

The jack-up drilling unit, Rowan Gorilla III, will shortly move to the EG7 location to drill the second of Bayfield's seven exploration and appraisal well commitments in the Galeota Licence.

Bayfield is the operator of the Galeota Licence area holding a 65% interest, with Petrotrin holding the remaining 35%.

Hywel John, Chief Executive of Bayfield Energy, commented: "The results from EG8 add to our confidence in the prospectivity of the Galeota licence and we will continue to focus on the potential for accelerated development and commercialisation of hydrocarbons in the East Galeota area."

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In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed by Brian Thurley, a geologist with over 38 years' experience who has a degree in Geology from the Royal School of Mines, Imperial College, London.