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 Wednesday that its 98.4 percent-owned license-holding company Caribbean Rex Limited (Caribbean Rex), has completed the drilling of three wells in the South Erin Block in Trinidad & Tobago. The wells were drilled as part of a three-well drilling program that Caribbean Rex started in the South Erin license 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.
Drilling activities in another of the Group’s concession in Trinidad & Tobago – the Cory Moruga block - constituting two wells, will be reported separately once concluded before the end of the second quarter in 2015.
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.
Kristofer Skantze, chief operating officer of Rex International Holding, said, “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. 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 $1 million per well, which was about 40 percent 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.”
Caribbean Rex holds a 100 percent working interest in South Erin Block and a 20 percent farm-in interest in Cory Moruga. In December 2014, Caribbean Rex divested its 100 percent interest in the subsidiary that holds the IPSC for the Inniss-Trinity concession, for an additional 34.19 percent stake in Caribbean Rex.
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