Treaty Energy Corporation has said it has encountered oil with its first well at the Princess Concession in Belize.
Bill Lehane 30 January 2012 12:17 GMT
The New Orleans and Houston-based player said the San Juan 2 well would be completed and put into production in the wake of the find at the Stann Creek field, which Treaty estimates could contain up to six million barrels of recoverable oil.
Co-chief executive Andrew Reid said the San Juan 2 would be produced at this first pay zone, adding: “It is our plan to drill San Juan 1 deeper than San Juan 2 in the belief that there may be additional pay zones present.”
Initial examinations of cuttings show “lime characteristics with good porosity and high saturation”, Treaty said, adding the charactertisics appeared similar to oil producing lime plays in Texas.
“These plays have produced hundreds of millions of barrels of oil over the past century and have been the source of many of the great Texas success stories”, the company commented on Monday.
Drilling had begun on 24 January at the well near Independence Village, adjacent to the Port of Big Creek in the Stann Creek District.
Treaty detected hydrocarbons in the form of a gas register when it reached 1235 feet on Friday.
“This presence of C1-C4 gas readings indicated a geo-pressurized oil bearing zone/gas driven”, the player said. “As drilling continued the indicator steadily increased from the depth of 1235 ft with readings being taken at one-foot intervals.”
Consultants from Advance Geological Services said oil was present in the cuttings samples, and continued drilling showed a constant increase in hydrocarbon presence in the formation down to 1290 feet, after which there was a steady decline.
Treaty holds 200,000 onshore acres within the Princess Concession, where it believes there could be three oil-bearing fields of various sizes, as well as 1.4 million acres on the Paradise Concession.
Treaty is an international acquisition, development and production company focused on leases that are considered to have proven but undeveloped reserves.
Published: 30 January 2012 12:17 GMT | Last updated: 30 January 2012 13:34 GMT
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