Triton Makes Second Oil Discovery Offshore West Africa
Triton Energy Limited reports that it has made another significant oil discovery on Block G offshore Equatorial Guinea. The analysis of drilling, wireline logging, downhole pressure measurements and reservoir/fluid samples indicate the Company's G-5 exploration well has gross oil pay of 407 feet, with 200 feet of net oil-bearing pay in one pool. The discovery, named Okume, is located nine miles northeast of Triton's Ceiba Field. The Okume-1 well encountered reservoirs similar in quality to those of Ceiba, with an average porosity of 28% and multidarcies of permeability. Okume oil is 37-degree API gravity crude. This is Triton's second major oil discovery on Block G in less than two years.
"The results of the Okume-1 well confirm our belief that there is a prolific functioning hydrocarbon system in the Rio Muni Basin," said James C. Musselman, Triton President and Chief Executive Officer. "We are extremely pleased that our exploration program in Equatorial Guinea again has unlocked significant shareholder value.
"This success demonstrates the highly prospective nature of blocks F and G, as well as our other acreage in West Africa, which provides numerous opportunities for sizable long-term reserves and production growth through the drill bit.
"Obviously, we are very early in the process of evaluating the size of the new field, but, prior to drilling the Okume-1, we estimated the prospect size to be 25-250 million barrels of gross recoverable oil," Musselman added. "Importantly, the well was the first test of several similar prospects in the same area that we high-graded based on 3-D seismic attributes calibrated by early exploration drilling and Ceiba Field development. The aggregate gross recoverable oil of the greater Okume area could be very significant, potentially more than the Ceiba Field."
Triton is planning future appraisal to confirm the discovery and prove minimum economic reserves for project development. In addition, the Company is evaluating options for an early production system if warranted.
"Since the Ceiba discovery in October 1999, we have pursued a systematic exploration process, leveraging leading-edge technology and the basin learning curve to replicate exploration success," said Brian Maxted, Triton Senior Vice President, Exploration.
"We chose not to flow test the well because we believe we can confidently predict Okume-1's deliverability. Based on the well results, we estimate Okume-1's flow rate would be between 10,000-15,000 barrels of oil per day (BOPD). Instead of flow testing the well, we will invest the time and money in the appraisal of our find," Maxted added.
The Okume-1 well, named after one of the most valuable timbers in Equatorial Guinea, was drilled at an approximate cost of US $5.5 million to a total depth of 7,064 feet in approximately 1,604 feet of water. It is located 18 miles off the continental coast of Equatorial Guinea.
Brought on production in November 2000 less than 14 months from discovery, the Ceiba project set an industry time record for deepwater development. The Ceiba Field is presently producing about 45,000 BOPD. The Company anticipates the rate increasing to 80,000-90,000 BOPD in early 2002 when it expects to have 10 producing wells and four water-injection wells on line and operational.
Triton anticipates it will drill two additional exploration wells in Equatorial Guinea, the first on Block G prior to year-end 2001 and the second on Block F in early 2002.