Challenger Energy makes positive progress on Saffron-2

Caribbean and Atlantic margin-focussed oil and gas company Challenger Energy updated the market on progress at the Saffron-2 appraisal well on Friday, which was drilled at the Saffron project in the South-West Peninsula of Trinidad.

The AIM-traded firm said the two objectives of the Saffron-2 well were to achieve immediate, profitable production and cash flow, and to enable the company to define an appropriate development plan for the Saffron field as a whole.

It said the primary targets of interest for the Saffron-2 well were the Lower Cruse and lower Middle Cruse sands, and from which, based on the outcomes of the Saffron-1 well, it had a P50 expectation of production rates in the range of 200 to 300 barrels of oil per day.

Drilling of the top section of Saffron-2, through the Upper Cruse and upper parts of the Middle Cruse, had now been completed to a depth of 1,593 feet, on time and on budget, with formations encountered in line with pre-drill expectations.

Logging had been completed for the top section of the Saffron-2 well, with the logs as prognosed, and consistent with comparable logs from Saffron-1.

Casing was being run and cemented deeper than the equivalent casing point for Saffron-1, which Challenger said would provide a better foundation for drilling the deeper primary targets.

The next stage of the Saffron-2 well would evaluate the deeper Middle Cruse, and the final stage of the well would evaluate the Lower Cruse.

“Saffron-2 is proceeding as planned, with the first section of the well successfully completed and logged, on time and on budget,” said the firm’s new chief executive officer, Eytan Uliel.

“Thus far, everything is as we would have hoped it would be, both geologically and operationally.

“This creates a good foundation for the next two stages of the well, which will evaluate the primary targets of interest.”

At 1328 BST, shares in Challenger Energy Group were up 2.14% at 2.86p.