Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, today provides an update
on operations at its Jacobin oil discovery.
Trinity safely perforated the two Lower Cruse 1 zones on 28 November 2023. Initially the well flowed clean black oil with a very high Tubing Head Pressure (THP) of around 2,500psi on a very small 12/64th inch choke. The well was also flowing considerable volumes of gas, which, when mixed with oil and water, produced a viscous emulsion at surface.
The well flowrate was initially unstable, flowing at a rate of between 80 to 160bpd of fluids including varying volumes of water and an unquantified rate of gas. The emulsion issue was managed by injection of speciality chemicals at the wellhead and on 10 December 2023 the well was diverted into a separator to allow the flow rates, including the gas rate, to be more accurately measured. The oil is of good quality with API density measured at 31.7 degrees at 60°F.
In recent days the flow rate from the well has begun to decline and given that the presence of gas and water was not anticipated from the original well log interpretation and so Trinity is embarking on a series of data gathering exercises, starting with a pressure gradient survey in the next week, potentially followed by a Production Logging Tool ("PLT") run that will help determine how best to optimise the oil production rate.
The initial results confirm the presence of oil in the Lower Cruse 1 formations and given the presence of confirmed oil in the Lower Cruse 3 horizon as previously announced provides further proof of concept that these deep horizons contain producible hydrocarbons.
The various data gathering exercises outlined above will be completed in January 2024 and decisions will be taken on how best to optimise production from the well. The results of these activities will also help the Company's decision-making process for the adjacent Buenos Ayres licence where Trinity intends to drill a further exploration well next year.
Now that the completion of the Lower Cruse 1 zones has occurred, the majority of the key activities have been completed, and we estimate that the undisputed costs incurred to date thus far to be USD 8.3 million, of which USD 6.2 million has already been paid. There is an amount of USD 2.3 million which falls outside of the drilling contract provisions, and pertains to costs incurred while drilling the well. As previously reported, Trinity expects to settle the total cost of this well, without recourse to any external finance.
The Company will continue to keep the market informed of progress on Jacobin operations.
Jeremy Bridglalsingh, Chief Executive Officer of Trinity, commented:
"The well has reinforced our confidence in the potential of the deeper play despite the operational challenges encountered with the Jacobin well. We have flowed volumes of good quality oil and demonstrated the potential for producible oil in the deeper horizons. Our work now will be to gather further data that will inform next steps in terms of establishing the full production potential of the well."
