Challenger Energy makes solid progress at Saffron-2

Caribbean and Atlantic-focussed oil and gas company Challenger Energy updated the market on the progress of the Saffron-2 appraisal well, targeting the Upper, Middle and Lower Cruse reservoirs on Friday, with an expectation of production rates in the range of 200 to 300 barrels of oil per day.

The AIM-traded firm said initial third-party petrophysical analysis of logs from the secondary reservoir targets of the Upper and Middle Cruse sections of the well indicated around 165 feet of net oil-bearing reservoir sands.

Drilling was continuing towards the primary Lower Cruse reservoir targets, with the well currently drilling at around 3,850 feet, against a target depth of 4,557 feet.

The board said the well remained on track for completion around 23 June, with production testing scheduled for mid-July.

“Initial petrophysical analysis of the top two sections of the Saffron-2 well indicates 165 feet of net oil-bearing reservoir sands,” said chief executive officer Eytan Uliel.

“Whilst these sections are not the primary targets of the well, it is encouraging that the well has already demonstrated production potential.

“Drilling continues towards the primary Lower Cruse reservoir targets, where the ultimate producibility of the well will be determined.”

At 0947 BST, shares in Challenger Energy Group were up 3.64% at 2.85p.