South West Peninsula

South West Peninsula Exploration and Future Development

Columbus has a significant acreage position in the South West Peninsula (SWP) of Trinidad consisting of the Leases comprising the Bonasse, Icacos and Cedros License areas. The acreage contains a mix of exploration and production enhancement opportunities.

The presence of shallow oil currently on production from the Bonasse and Icacos Fields demonstrates the working petroleum system in this extension of the Eastern Venezuela Basin. With only a few medium to deep well penetrations having been drilled, this makes the area immature from an exploration standpoint and is therefore considered highly prospective. With an existing good coverage of 3D seismic, the area is ready for a new approach to exploration.

The Company plans to drill one or more wells in the SWP in the second half of 2019, namely in the Bonasse license area.

On-trend structures offshore have yielded major oil fields such as the Soldado Main, Soldado South West, and Soldado West within 12 km of the South West Peninsula. It is Columbus’s view that similar structures may lie onshore beneath the SWP, presenting significant exploration opportunity in the area. 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 twelve mapped prospects over the broader SWP area, each having volumes of between 20-400 million barrels in place. Onshore drilling allows the cost per well to 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 between US$500,000 to US$1,000,000 per well based on favourable rig rates, including wells with multiple stacked reservoir targets, with the first well being drilled, subject to regulatory consent and satisfactory commercial arrangements, in the second half of 2019.