Columbus Energy Res - New Country Entry - Weg Naar Zee block, Suriname
("Columbus" or the "Company")
New Country Entry -
Columbus, the oil and gas producer and explorer with operations onshore
· Onshore block with a discovered resource of 24mmbbl (STOIIP)1 in a proven hydrocarbon province.
· Large block (900km²) with exploration potential.
· No signature bonus or upfront consideration.
· Company can control timing of appraisal/development work. Phase 1 Exploration Period (3 years) consists of G&G studies and 2 Extended Well Tests.
· Suitable for application of Enhanced Oil Recovery techniques used by Columbus in
· Complimentary to existing operations and on-strategy.
"The Company is delighted to have signed the Production Sharing Contract with Staatsolie for the Weg Naar Zee block, onshore Suriname ("WNZ"). Staatsolie have been seeking partners with experience in onshore field developments with secondary and tertiary recovery experience to commercialise the discovered oil resources. Columbus's experience in
We would like to thank Staatsolie for their support and assistance in signing the PSC and look forward to working with Staatsolie to make WNZ a success for both parties. For Columbus, WNZ is a low cost, low risk entry into a block with an estimated 24mmbbl STOIIP in a proven hydrocarbon province, close to existing infrastructure. Provided the results from the extended well tests are as expected, the Company intends to fast track the development of the WNZ oil discoveries."
An interview with
Staatsolie, the state oil company for the Republic of Suriname, is the operator of a number of oil fields in Suriname and is also the holder of the Weg Naar Zee block ("WNZ"), onshore Suriname. In
WNZ is an onshore block measuring approximately 900km². It is located to the west of
1 Source: Staatsolie http://opportunities.staatsolie.com/investment-opportunities/onshore-opportunities/
WNZ contains discovered oil in discrete sand bodies having a combined STOIIP of approximately 24mmbbl. The WNZ area has extensive 2D seismic data and exploration well information (some with well test data) which will assist in the exploration, appraisal and future development of hydrocarbons from WNZ.
Production Sharing Contract
The Company has signed a Production Sharing Contract with Staatsolie for WNZ (the "PSC"). The main terms of the PSC are:
Staatsolie's has the right to back in for up to a 50% Participating Interest.
Staatsolie intends to participate (up to 50%) in each Commercial Field that is developed. Staatsolie will fund its relevant percentage share of all costs (including back costs) associated with each Commercial Field from the date of approval of the relevant Development Plan.
Phase 1: 3 years.
Phase 2: 2 years.
Phase 3: 2 years.
Columbus can elect to, but is not required, to enter into Phase 2 or Phase 3.
Minimum Work Obligation ("MWO"):
Phase 1: G&G studies and an Extended Well Test of at least two separate stratigraphic oil bearing units.
Phase 2: 100 km of 2D seismic data and drill 3 Exploration Wells.
Phase 3: drill 5 Exploration Wells.
Columbus can use the revenue from up to 2 Extended Well Tests during the Exploration Phases to help fund exploration activities.
Minimum cost of MWO:
Up to 85% of Gross Production
Columbus entitled to a share of available Profit Oil ranging from 80% (when the R factor is <1) to 40% (when the R factor is >2).
Marketing of oil:
Columbus has the right to market and sell its Participating Interest share of oil without restriction.
Information on WNZ and Suriname
The WNZ block has been subject to previous exploration and appraisal activity, namely by Elf Petroleum in 1968 and Staatsolie in 1989-1991 and 2007-2013. Those activities resulted in the discovery of a number of discrete oil bearing sand bodies with a combined STOIIP estimated by Staatsolie of circa 24mmbbl. The oil bearing sands belonging to the Paleocene age Saramacca sandstone units, are similar to the producing Tambaredjo, Tambaredjo North West and Calcutta Fields, 55 KM to the east of the WNZ. WNZ has circa 115km of existing 2D seismic line data and benefits from a widespread dataset of approximately 68 wells. WNZ includes additional exploration opportunities in the form of basin margin structural and stratigraphic traps in both the Paleocene and Cretaceous age sediments.
WNZ is located in the onshore extension of the Guyana-Suriname sedimentary basin. Staatsolie has produced over 100 million barrels from its onshore oil fields in Suriname, including the Tambaredjo,
Oil has been previously found and tested in WNZ's Paleocene age sands in the Lower and Middle Saramacca. These are high quality reservoir sands at shallow depths (less than 1200ft) with reasonable interval thickness of between 14ft to 30ft.
In 2019/2020, Columbus intends to conduct a petrophysical update of the existing well data, perform a detailed reservoir evaluation study and perform an Extended Well Test ("EWT") of at least two separate stratigraphic oil bearing zones, with the intent of submitting a development plan for WNZ including those oil sands deemed commercial as soon as practical.
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Qualified Person's statement:
The information contained in this document has been reviewed and approved by
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Financial Adviser and Broker
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Public and Investor Relations
Mark Antelme /
+44 (0)20 8434 2643
Notes to Editors:
Columbus is guided by the following core values; safe and sustainable, stronger together, creative excellence, positive energy, totally trusted and personally responsible.
The Company is led by an experienced Board and senior management team with supportive shareholders and intends on leveraging its expertise and experience to build an attractive and diversified portfolio of assets across
This information is provided by RNS, the news service of the
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