Challenger Energy Group PLC (LON:CEG) said logging and analysis confirmed some 300 feet of net oil bearing reservoir sands in the Saffron-2 well in Trinidad and it is now being prepared for a production test later this month.
Logging measured some 1,400 feet of gross reservoir sands across the Upper, Middle and Lower Cruse formations. In the Lower Cruse, the primary reservoir of interest, the well encountered 63 feet of net oil-bearing reservoir sands and a further 70 feet is potential is also indicated.
It is slated that the well will be perforated on or around July 23 prior to the production testing. Pre-drill estimates put the production potential in the range of 200 to 300 barrels of oil per day.
"I am pleased to advise that logging of Saffron-2 - the first well drilled by Challenger Energy onshore Trinidad - has been completed, with oil-bearing sands identified in all reservoir sections of interest, consistent with pre-drill estimates and those indicated from the Saffron-1 discovery well,” said chief executive Eytan Uliel.
At the same time, Challenger said it has been making progress in efforts to secure additional sources of funding.
In June, it entered into a term sheet with Arena Investors LP for a potential convertible loan note funding of US$10mln. The injection would fund drilling of future production wells as envisaged in the first phase development plan for the Saffron project.
“We are working to conclude a funding on mutually acceptable terms, with a view to having capital available once we have production data from the Saffron-2 well and have been able to assess development options and schedule for a broader Saffron development,” Uliel added.