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Rex strikes oil at two wells onshore Trinidad

21st January 2015

Rex International has announced that its 98.4 per cent-owned licence-holding company, Caribbean Rex, has completed the drilling of three wells in the South Erin Block in Trinidad and Tobago

Rex International has announced that its 98.4 per cent-owned licence-holding company, Caribbean Rex, has completed the drilling of three wells in the South Erin Block in Trinidad and Tobago
Caribbean Rex will consider putting the wells on production as soon as testing has been completed and approvals have been granted

The wells were drilled as part of a three-well drilling programme that Caribbean Rex started in the South Erin licence in May 2014.

Oil-bearing sands were encountered in all wells, two of which are deemed to be commercial with substantial net pay sands.

Caribbean Rex will consider putting the wells on production as soon as testing has been completed and approvals have been granted.

“We are pleased with our strike rate of 67 per cent (two out of three wells drilled) in the South Erin Block, achieved with the assistance of Rex Virtual Drilling,” said Kristofer Skantze, chief operating officer of Rex International Holding.

“The information that we have gathered from the wells will be used to further deepen our understanding of the sand trends in the Cruse and Lower Forest reservoirs within the concession. We were able to get drilling costing down to below USD 1.0m per well, which was about 40 per cent below budgeted costing, as a result of our cost management measures and taking advantage of the lower cost of oil drilling services over the past months, arising from the global fall in oil prices.”

The CH6 well in South Erin was drilled to 4,113 feet to the target formation of Lower Forest A and B sands while the CG8 well in South Erin was drilled to 5,900 feet to the target formation of Lower Forest A2, B2 and Cruse.

Good quality oil-bearing sands were encountered in both these wells.

The Cassava 1 well in South Erin was drilled to a total depth of about 6,000 feet to explore for extensions of productive Cruse and Lower Forest reservoirs outside of the main producing area.

Although there were gas and oil shows, they were not in commercial quantities.

Drilling activities in another of the group’s concession in Trinidad and Tobago, the Cory Moruga block, constituting two wells, will be reported separately once concluded before the end of the second quarter in 2015.

“Rex Virtual Drilling (RVD) has been incorporated together with conventional geological and geophysical studies in our work process to identify the locations of wells to drill,” said Måns Lidgren, chief executive officer of Rex International Holding. “The drilling campaign in Trinidad holds important lessons for the refinement of RVD, especially for enhancing the technology’s use on onshore seismic data. The Rex Technology Management team will continue to work closely with the geological team to further improve the de-risking of the asset.”

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