BG, Challenger farm into block off Trinidad
BG International and Challenger Energy have signed agreements to farm in to Canadian Superior Energy's Intrepid Block 5(c) PSC 85 km off the eastern island of Trinidad.
PORT OF SPAIN, Aug. 27 -- BG Group subsidiary BG International Ltd. and Challenger Energy Corp. have signed agreements to farm in to Canadian Superior Energy Inc.'s Intrepid Block 5(c) production-sharing contract 85 km off the eastern island of Trinidad.
BG is acquiring a 30% interest, and Challenger is paying 33.33% of the costs of the three-well exploration program to earn a 25% interest in the block, said Canadian Superior Chairman Greg Noval. Canadian Superior will pay 26.67% of the costs and retain a 45% interest in the block.
BG's Executive Vice-Pres. and Managing Director Martin Houston said, "Block 5(c) lies adjacent to our acreage in the East Coast Marine Area and has the potential for cost-effective development using existing infrastructure."
The agreement is subject to Trinidad and Tobago government approval.
Noval said Intrepid Block 5(c) has "multi-tcf [gas] potential and is located in one of the most coveted oil and gas plays in the world."
Canadian Superior is operating the drilling of the joint venture's first well on the Victory prospect. The Victory well has been drilled to more than 9,772 ft subsea, and various drilling operations, including wireline logging and the running and cementing of 13-5/8-in. casing, are being undertaken before drilling ahead and preparing to evaluate the main targets of the well.