Opposition MP Dr Bhoe Tewarie says Government should develop a revenue strategy that is meaningful for T&T, particularly with declines in revenue due to falling energy prices.
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Singapore firm spuds its first onshore well in T&T
Rex International Holding Ltd, one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Ltd, yesterday announced that its 64.17 per cent-owned licence-holding company, Caribbean Rex Ltd, spudded its first onshore well in its Cory Moruga concession in T&T on April 29. This is the first of a five-well onshore drilling programme that Caribbean Rex is undertaking this year in its South Erin and Cory Moruga concessions. The target drilling depth of this first well is 6,700 feet. Drilling of the other four wells will follow one after another over the next half year and drilling and completion work for each is expected to take between 25 and 50 days, depending on the well depth and geology.
The locations of all five wells were selected using Rex Virtual Drilling (RVD) analysis made on 3D seismic data in tandem with conventional geological interpretation of seismic and well data. The RVD analysis has already correctly and independently confirmed all previous known well results in the two concessions on location, size and discovery depth. The RVD de-risking tool has allowed the company to identify entirely new drilling prospects in both concessions which would not have been selected using only conventional geological analysis. The company expects that on an average, it will make exploration discoveries at a strike rate of more than 50 per cent, compared to the T&T and industry average strike rate of ten to 15 per cent.
Before putting the well into production, the company is looking at using its Rexonics ultrasonic well-cleaning technology to remove any built-up deposits and enable optimal production flow from the start.
On April 11, Rex International Holding announced that its five-well onshore drilling programme in T&T had been fully funded. It also said that wells would be put on production about one to two months after completion of drilling and subject to successful commerciality testing and government approvals. Production from the Caribbean Rex wells in T&T is projected to be more than 500 barrels of oil per day (bopd) at the end of 2014. It is expected that results of the drillings will be announced when all five wells have been drilled. Caribbean Rex Ltd is owned 64.17 per cent by the Singapore-listed company; 34.76 per cent by West Indian Energy Holding AS—previously known as Pareto Staur SPV1 AS—and 1.07 per cent by Geoffroy Leid, chief executive officer (CEO) of Caribbean Rex. Caribbean Rex holds a 100 per cent working interest in the South Erin block which is subject to a litigation claim by Maxim Resources against Jasmin Oil and Gas, a company recently acquired by Rex.
Caribbean Rex holds a 100 per cent interest in the incremental production sharing contract for the Inniss-Trinity field, and a 20 per cent farm-in interest in the Cory Moruga block, which is to be increased to 51 per cent upon completion of its current obligations due to culminate this year. Rex International Holding has rights to explore oil and gas in the Middle East, Norway, the US and T&T. These offshore and onshore concessions cover an aggregate area of more than 25,000 square kilometres in regions known for previous oil and gas discoveries.
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