Bahamas Petroleum Company PLC (LON:BPC) highlighted multiple value drivers as it updated investors on its preparations for drilling in Trinidad and Suriname.
First on the slate is the Safron-2 appraisal well which is expected to begin in mid-May, following mobilisation in April.
If successful, Saffron-2 is expected to deliver production of around 200 to 300 barrels of oil per day (bopd).
A further five to nine follow up wells are then lined up for drilling in the second half of 2021 as part of a field development which would eventually comprise around 30 wells.
This initial programme of wells is presently projected to yield some 1,000 to 1,500 bopd by the end of 2021, to generate an estimated US$8-12mln of annual cash flow (at US$$60 per barrel crude).
Another upside project is planned in Suriname, within the Weg Naar Zee production sharing contract (PSC) area, where drilling is due to start in July after a minor COVID-19 related delay.
Staying in Trinidad, the company’s core production portfolio is said to have stabilised at 450 to 500 bopd, and it is supported by a planned programme of well workovers (10 are planned) during the second quarter of the year.
BPC highlighted also that 40 potential infill well locations have been identified at existing fields, and four have been high graded for drilling in the second half of this year. The wells are estimated to add between 50 and 100 bopd of production.
"Since we acquired our Trinidad and Tobago and Suriname licenses, the team have worked tirelessly to fully understand their significant potential,” said Simon Potter, BPC chief executive.
“This has progressed such that we are now looking at multiple value drivers via appraisal, infill and well testing campaigns across our portfolio during 2021.”
He added: “It is our intention that through these actions we can continue to increase production to more than 2,500 bopd across our portfolio which, with a conservative oil price estimate, can generate significant cash flow."
The company also told investors that talks are underway with various parties in relation to a potential prepay facility over the company's producing asset base in Trinidad and Tobago.