South West Peninsula
Trinidad operations comprise of two main assets; the South West Peninsula licences and the Goudron Field.
The South West Peninsula represents the next stage of growth for Columbus and offers significant exploration, development and production optionality. The South West Peninsula is in close proximity to, and geologically a part of, the prolific East Venezuelan Basin – offering offshore potential from an onshore location.
South West Peninsula
Columbus, through its interests in Icacos, its wholly owned Cedros leases and its other Existing Lease and Future Leases, has approximately 8,700 acres in the SWP within which to explore. Columbus also has interest in existing producing assets that can support enhanced production activities, such as well recompletions and the drilling of new production wells.
Columbus has a fully funded 2018 work programme for the South West Peninsula which includes commencing a well reactivation programme in Q2 2018 on the Bonasse field, alongside undertaking further analysis of good quality 3D seismic and other data, with the first well potentially being drilled, subject to satisfactory technical analysis, in the first half of 2019.
On-trend structures offshore have yielded major oil fields, in excess of 200 million barrels, and it is Columbus’s view that similar structures may lie onshore beneath the SWP, presenting significant exploration opportunity in the area for Columbus. Any successful discovery/appraisal can be brought onto early production at a low cost due to the presence of existing Company operated oil production and sales capabilities and other locally available hydrocarbon infrastructure.
Company interpretations includes mapped multiple prospects of 20-400 million barrels in place and due to the fact wells can be drilled onshore, the costs per well will be significantly lower than equivalent depth wells offshore. It is anticipated that between 2-3 wells, targeting the shallower prospects, may be drilled on the licences initially at costs of around US$2-4 million per well, including wells targeting multiple stacked prospects, with the first well potentially being drilled, subject to satisfactory technical analysis, in the first half of 2019
Bonasse Oilfield (Columbus, 100%*)
At present, Bonasse is intermittently producing at around 10 barrels of oil per day but with Columbus taking over operatorship, Columbus is confident that the existing 16 wells at Bonasse can be profitably rejuvenated at minimal capital expense from the Company’s existing cash resources in a manner similar to those successfully adopted on the Goudron field.
- Discovered in 1911 by the Grieg 1 well
- Delineated by 16 wells, the field currently has 10 wells available for reactivation
- Production was suspended in mid-2016 following which a subsidiary of Columbus performed limited reactivation work on three Bonasse wells in June 2017
- Additional shallow drilling targets available within the field boundaries
- Columbus believes significantly greater potential exists for additional production through the application of proven technologies which Columbus has already used on its Goudron field
- Reactivation programme to commence in 2Q 2018, fully funded from available cash resources
*subject to completion of the BOLT transaction
Icacos Oilfield (Columbus, 50%**)
Located in the extreme southwest of Trinidad, the Icacos field is operated by the Territorial Services Group (a subsidiary of Touchstone Exploration Inc).
- 1,960 acres onshore, producing since 1960
- Very limited available seismic data
- Recent exploration has only targeted shallow horizons
- Average production of approximately 25 bopd
- Additional development potential and possible deeper targets
Cedros Leases (Columbus, 100%**)
Located around the Icacos field within the south west peninsular and operated by Columbus.
- The Cedros leases cover approximately 1,750 acres
- Prospective and underexplored acreage
- 3D seismic data available
** Exploration and Production (Private Petroleum Rights) Licence application with Ministry of Energy and Energy Industries
Goudron field (Columbus, 100%)
Goudron is a high-quality oil field which lies between the East Moruga and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline to the Point-a-Pierre refinery in western Trinidad.
From Goudron, Columbus has now become cashflow positive and continues to seek to optimise the fields production.
- Discovered in 1927
- Developed by Texaco between 1956 and 1986
- Exceptionally high-quality oil in a shallow reservoir
- Production was increased in 2H 2017 from 327 bopd at end 1H 2017 to a peak of 560 bopd at year end
- The Company intends to increase production to between 900-1,550 bopd by the end of 2018 through a well optimization and stimulation programme and a recently commenced Enhanced Oil Recovery (EOR, waterflood) campaign
- Original wells still produce at economic rates (GY-209 completed in 1956, currently produces 12 bopd)
- Long term strategy for field development is production growth to 3,000 – 4,000 bopd through EOR.
From the South West Peninsula and backed by production from Goudron, Columbus now finds itself in a cashflow positive position and plans for significant growth as it increases production and reserves in the South West Peninsula.
Using new technology and making investments in exploration, work-overs, new facilities and the ongoing EOR campaign and infill wells Columbus expects to substantially increase the production from its acreage in Trinidad in the next few years. Additional opportunities exist to add further assets in Trinidad from third party operators and there is untapped potential associated with each of Columbus’ fields.
Columbus seeks to maintain high quality relationships with all stakeholders and to be considered as a partner of choice in the ongoing development of onshore resources in Trinidad. The Trinidadian Minister of Finance recently stated that there were 3 billion barrels of oil to be recovered onshore in Trinidad and Columbus seeks to pay a leading role in that effort.
On the 27th January 2017 the Spanish Cabinet of Ministers informed the Company that its Licence extension application for the renewal of the La Lora Concession had been rejected. Contrary to advice obtained by the Company in Spain which suggested that there was a strong case for a renewal, the ultimate decision was taken on a purely legal, rather than commercial or technical basis and this was complicated by relevant petroleum laws changing several times between the granting of the initial licence and its expiry. As a consequence, the Concession terminated at midnight on 31 January 2017.
The Company is currently maintaining the Ayoluengo field on a care and maintenance basis but plans to participate in a tender exercise for a new concession which the Spanish Government plans to commence in 2Q/3Q 2018. The Company will either bid solely or with a partner and invites interested parties to contact the Company at firstname.lastname@example.org (for the attention of Tony Hawkins, Legal and M&A Director).