Challenger Energy (CEG ) said initial analysis of the Saffron-2 appraisal well in Trinidad and Tobago has indicated the well to contain around 165ft of net-oil bearing reservoir sands. 

Saffron-2, of which Challenger holds a 100% interest in, is a twin well to the Saffron-1 discovery well (which is drilled from the same well pad) with a target depth 4,557ft. 

Saffron-2 was spud in May 2021 and, at the time, 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.  

The discovery was identified at the secondary reservoir targets of the Upper and Middle Cruse sections of the well where initial third-party petrophysical analysis was undertaken.  

"Whilst these sections are not the primary targets of the well, it is encouraging that the well has already demonstrated production potential,” said CEO of Challenger, Eytan Uliel.  

The group said drilling continues towards the primary Lower Cruse reservoir targets, with the well currently drilling at approximately 3,850ft against a target depth of 4,557ft.Uliel said drilling here is where the “ultimate producibility of the well will be determined.” 

The units currently being drilled will be logged and sampled via MDT (assuming success), and thereafter it is intended the well will be lined and readied for production testing. 

The group expects the process of preparing for production testing, including perforation, to take 2-3 weeks, such that initial production could occur in around mid-July. The budgeted total cost for Saffron-2 is $3m, with an anticipated drill time around 25-30 days. 

Addressing shareholders earlier this week, Eytan commented: “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  

The Caribbean-focused oil-and-gas firm, formerly Bahamas Petroleum, says initial analysis for the top two sections of Saffron-2 in Trinidad has demonstrated its production potential. 

While these sections aren't the primary targets of the Saffron-2, drilling continues towards the primary Lower Cruse reservoir and the well remains on track for completion around June 23. 

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.  

Reasons to Follow CEG

Challenger Energy is a Caribbean and Atlantic margin focused oil and gas firm 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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