Bahamas Petroleum sees green shoots in Trinidad

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Bahamas Petroleum Company PLC (LON:BPC) told investors it is seeing green shoots of improvement at the Trinidad oil fields acquired via its merger with Columbus Energy.

A substantial increase in field activities has arrested prior production decline and there are now early signs of sustainable improvement in production rates.

Programmes in Trinidad are run by separate operational management from BPC’s core focus, the pending Perseverance exploration well which is due to spud before the end of 2020.

READ: BPC raises £9.5mln as countdown to Perseverance continues

In Trinidad, the company is targeting a baseline production rate of 500 barrels of oil per day (bopd) from the fields which had previously suffered from a lack of investment.

A notable catalyst in Trinidad is slated for the first quarter of 2021 when the Saffron-2 development well is due to spud.

Additionally, the company noted that multiple prospects have been identified across the South West Peninsula (SWP) acreage and each are deemed to have over 10mln barrels of recoverable resources, making them similar in size to Saffron.

“Since assuming management of Columbus’ assets, we have sought to leverage our proven operating experience and skills, in pursuit of a simple short-term aim: to deliver cash flow from operations in Trinidad sufficient to cover the local operating costs, and thereafter to ultimately cover the overheads of the enlarged group as we build to material, profitable production. In the relatively short period of time since assuming operational control, we have been extremely busy in taking the first steps to realising performance improvements in support of this aim,” said Simon Potter, Bahamas chief executive in a statement.

“We have moved quickly to increase activity in the producing fields to a level not seen for a number of years, defined the drilling program for Saffron 2, and pulled the levers that we believe will deliver an increase to each of production, cashflow, and the existing resource and reserve base.”

Potter added: “It is an ongoing process, but we are pleased to be seeing the first green shoots of operational improvement, with arrested production decline and, albeit modest, production growth. Collectively, this gives us great optimism in being able to deliver on our value-creating strategy for the future.”

In Suriname, meanwhile, the company is advancing its drilling and well testing plans, with the first well in the schedule anticipated to spud during the first quarter of 2021.

A new competent persons report covering all assets in Trinidad and Suriname is due later this month.

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