Rex International Holding Limited (Rex International Holding or the Company, and together with its subsidiaries, the Group), one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Limited, announced Monday that its 64.17 percent-owned license-holding company Caribbean Rex Limited (Caribbean Rex), has spud its first onshore well in its Cory Moruga concession in Trinidad & Tobago April 29. This is the first of a five-well onshore drilling program that Caribbean Rex is undertaking in 2014 in its South Erin and Cory Moruga concessions.
The target drilling depth of this first well is 6,700 feet. The drilling of the subsequent four wells will follow suit one after another over the next half year. Drilling and completion work for each well is expected to take between 25 and 50 days, depending on the well depth and geology.
The locations of all five wells have been selected using Rex Virtual Drilling (RVD) analysis made on 3D seismic data of the concessions, in tandem with conventional geological interpretation of seismic and well data for purposes of quality control and reality check. The RVD analysis has already fully correctly and independently confirmed all previous known well results in the two concessions both to their location, size and discovery depth. The RVD derisking tool has allowed the Company to identify entirely new drilling prospects in both concessions. These prospects would not have been selected using only conventional geological analysis of the concessions. The Company expects a significant de-risking of its exploration risk in its concessions because of its RVD technology and stands behind its claim that on an average, it will make exploration discoveries at a strike rate of over 50 percent, compared to the Trinidadian and industry average strike rate of 10 to 15 percent.
Previous Cory Moruga concession holders made an exploration well oil discovery in the block in early 2011, the first onshore exploration well discovery in Trinidad in decades. The well was subsequently shut-in but will be put on production later this year by the Company in addition to its five-well drilling program. Prior to putting the well on production, the Company is looking at utilizing its Rexonics ultrasonic well-cleaning technology to remove any built-up deposits and enable optimal production flow from the start.
Rex International Holding had announced April 11 that its five-well onshore drilling program in Trinidad had been fully funded. It also said that wells would be put on production about one to two months after completion of the drilling operation and subject to successful commerciality testing and government approvals. The production from the Caribbean Rex wells in Trinidad is projected to be over 500 barrels of oil per day (bopd) at the end of 2014. It is expected that results of the drillings will be announced when all five wells have been drilled.
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