GCIChallenger advances Saffron-2 well though lower section to a depth of 2,804ft
(CEG ) has provided a positive progress report on drilling at the Saffron-2 appraisal well as it advanced through the lower section of the Middle Cruse to a depth of 2,804ft with formations in-line with pre-drill expectations.
The Saffron-2 well was spud at 7:30pm on 23 May (Trinidad time), and as advised by the Company on 2 June 2021, the top section of Saffron-2 was safely completed to a depth of 1,593ft (at 17 1/2"), and successfully logged, cased and cemented.
Since then, the middle section of the Saffron-2 well has been safely and successfully drilled (at 12 1/4") to a depth of 2,804ft, logged, cased and cemented.
The well penetrated various Middle Cruse zones including hydrocarbons zones as prognosed pre-drill, and with drilling rates and impact on surrounding clays and mobile shales improved significantly from Saffron-1 owing to the use of synthetic-based muds, thus providing a robust technical validation for the use of these muds, and a solid foundation for drilling design in any future field development.
Drilling of the final stage of the Saffron-2 well underway; objective in this final section of the well is to define the resource potential of the Lower Cruse, and thereafter production test these zones
Eytan Uliel, Chief Executive Officer, commented: “I am pleased to provide a further interim update on the drilling of the Saffron-2 well, where the middle section of the well has now been successfully drilled, logged, cased and cemented. As with the first section of the well, drilling has progressed in-line with pre-drill expectations, albeit slightly overtime due to severe weather and COVID-19 constraints impacting access to site.
Technically, the results thus far are in-line with pre-drill expectation, with hydrocarbons now defined in both well sections to-date, as prognosed, and with initial petrophysical analysis of the top two sections of the well indicating formation quality and thickness consistent with Saffron-1.
Most significantly, in this stage of drilling the use of synthetic-based mud has worked as intended, enabling for faster and smoother drilling, and protecting the well bore through mobile shale zones, thus representing a major advance in Challenger's technical understanding as compared to the water-based mud used for the Saffron-1 well.
Outlook
The final section of the Saffron-2 well (at 8 1/2") is currently being drilled out, to a final target depth of 4,557ft. This hole section will include the primary reservoir targets of interest in the Lower Cruse, which will be logged and (assuming positive results) sampled via MDT (a wireline formation testing tool).
This process, which should be sufficient to provide an indication of the aggregate resource and production potential, is expected to be completed on or around 23rd June 2021, which timeline remains consistent with an overall 30 day expected drill.
Thereafter (and assuming positive results), the well will be lined and readied for production testing. It is expected that the process of preparing for production testing (including perforation) will take 2-3 weeks, such that initial production could occur in around mid-July.
Eytan added: “Overall, we have set ourselves up well for the final stage of drilling, which will tell us what the extent of the resource in the primary Lower Cruse target is and pave the way for putting the well on production. I look forward to advising further on completion of drilling."
View from Vox
Investors will be aware the primary targets of interest are the Lower Cruse and deeper Middle Cruse sands, and today’s news regarding the middle Cruse is therefore reassuringly positive.
The final section of the Saffron-2 well, currently being drilled out to a final target depth of 4,557ft, will include the primary reservoir targets of interest in the Lower Cruse.
This process, which should be sufficient to provide an indication of the aggregate resource and production potential,
The budgeted total cost for the Saffron-2 well is $3 million, with an anticipated drill time in the range of 25-30 days.
Despite delays due to poor weather and COVID restrictions on personnel movements, drilling is still expected to be completed on or around 23rd June 2021, which is consistent with the overall 30 day expected drill programme with cost overruns expected to be largely mitigated by cost efficiencies elsewhere and fast than expected penetration rates.
Reasons to CEG
Challenger Energy is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay.
Trinidad and Tobago
- Five producing fields
- Two appraisal / development projects
- A prospective exploration portfolio in the Southwest Peninsula
Suriname
Onshore appraisal / development project
Exploration licences in Uruguay and The Bahamas are highly prospective and offer high-impact value exposure within the overall portfolio value.
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