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Trinity and Repsol looking for more oil
The company behind the fourth major discovery of hydrocarbons in T&T in the last two years has started drilling on its El Dorado field off the West coast of Trinidad. In an announcement on the London Stock Exchange (LSE) where it is listed, Trinity Exploration and Production plc announced that drilling has started on a well located off the West Coast of Trinidad in the Pt Ligoure/Guapo/ Brighton Outer (PGB).
This news comes just as, for the first time since its initial public offering (IPO) on February 14, the energy company is trading at record highs on the LSE. It recently spiked at 134 pence. The independent full-cycle oil and gas company has onshore and offshore assets in T&T and South Africa. Trinity said in its statement to the LSE: “The license in 60 feet of water and lies approximately 2 km from Trinity-operated production infrastructure. Trinity is operating the well and holds a 70 per cent working interest in the prospect.”
Monty Pemberton, the company’s chief executive officer, said: “Together with our TGAL-1 (Galeota) exploration well on the East Coast, the company is currently drilling two independent exploration wells. These two prospects offer the potential for significant reserve growth and future near term production.
“As the El Dorado prospect is located very close to our existing production infrastructure the well, on success, can be tied back to our recently refurbished MP-8 platform and put onto a long-term production test. This will provide early cash flow and production data which will enable the company to de-risk any full field development.” On Monday, Trinidad announced T&T’s first and only discovery for the year—50 to 115 million barrels of high quality crude oil at the company’s TGAL-1 exploration well at Galeota.
That discovery has been welcomed by Minster of Energy and Energy Affairs Kevin Ramnarine who congratulated Trinity. The minister said a recent upsurge in exploration and production activity was the result of Government’s energy policy which had sought to make the upstream sector more competitive by providing a range of new fiscal incentives that had stimulated investment.
Ramnarine said by the end of this year there woulf be eight rigs drilling in offshore T&T. This compared to one rig drilling offshore in June 2010. He said last year the country recorded $US 2.5 billion in Foreign Direct Investment, 90 per cent of which went to the energy sector. Trinity said the El Dorado well was testing an undrilled fault block on the west flank of a company-operated producing Brighton field. The WS-152 jackup rig would drill a vertical well to a total depth of 6,138 feet to test five stacked sand packages.
Trinity’s management estimates the gross unrisked prospective resources of 13 million barrels of crude oil (mmbbl) from the well with a chance of success estimated at 51 per cent. The well is expected to take approximately 35 days to drill.
Also announcing new exploration activity this week was Repsol which will drill eight new wells in T&T in 2014-2015. An e-mail from the company’s business unit head Luis Polo confirmed that Repsol’s drilling campaign would take place in the existing Teak field and in some exploration prospects within the Teak Samaan and Poui licence. “We will be drilling with two jack-up rigs simultaneously, the Rowan Gorilla and Sea Drill,” Polo said.
The overall estimated capital expenditure for this campaign is around US$120 million. Drilling is expected to take place from next year and probably into 2015, the Spanish-owned oil company said.
with reporting by Aleem Khan
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