Exploration and production group Bayfield Energy (LON:BEH) is about to spud the first well in its drill programme on the offshore Galeota Licence Area in Trinidad. In a market update, the company also said it was making progress in securing a licence in South Africa but that it was pulling out of Russia after data processing failed to identify any prospects worth drilling.
In Trinidad, exploration and appraisal well EG8 will be drilled in 135 ft of water to a total depth of approximately 8,700 ft. EG8 is a deviated exploration well intended to appraise the Lower Pliocene to Upper Miocene stacked shallow marine sandstone reservoirs encountered in previous offset wells EG2 (1978) and EG5 (1985). Both of these earlier wells encountered and tested gas at various levels and EG2 tested oil at a rate of 1,000 bopd from the E sand.
In EG8, several primary exploration targets have been identified by direct hydrocarbon indicators highlighted through reprocessing of 3D seismic data acquired by Bayfield in 2010. This year the company expects to drill EG7, EG8 and at least one well to the north east of the Trintes field. The remaining wells required to fulfil its seven-well obligation are planned to be drilled in 2013.
Meanwhile, at the Trintes field, also in Trinidad, the contribution from two new wells drilled in the fourth quarter of 2011 has increased gross production to 1,700 bopd (1,105 bopd net to Bayfield). Well B10, a short side track completed in November, is presently producing at over 160 bopd and well B8, the first of the longer side tracks to be drilled with this rig, is producing in excess of 400 bopd. Gross production from the Trintes field for 2011 averaged 1,197 bopd (778 bopd net to Bayfield).
In South Africa, Bayfield has received an Acceptance Letter from the Petroleum Agency of South Africa, which confirms that its application for the Pletmos inshore Licence had been approved by the Mineral Resources Minister. Once the formal wording is agreed, a date will be set for the signature of the licence documentation. Once that is complete, Bayfield’s initial focus will be on the reprocessing of existing 2D seismic data over the block which is planned to be completed during 2012.
Finally, in Russia, interpretation of reprocessed 2D seismic data acquired over the Karalatsky license area in the first quarter of 2011 has not identified any prospects that would justify further investment in an exploration well. Accordingly, Bayfield is taking steps to prepare for the surrender of the Karalatsky Licence and the orderly dissolution of Astrakhanskaya Gas and Oil Company, the local operating company in which it holds a 74% interest. The termination of operations in Russia by Bayfield will result in a non-cash write-down of approximately US$ 3.5 million.
