BHP Billiton claims significant oil discovery off Trinidad

BHP Billiton said Tuesday its Canteen delineation well in shallow waters off the east coast of Trinidad has indicated a significant oil resource.

By the OGJ Online Staff

HOUSTON, Dec. 4 -- BHP Billiton said Tuesday its Canteen delineation well in shallow waters off the east coast of Trinidad has indicated a "significant oil resource."

The Global Marine Labrador I spudded the Canteen-1 Oct. 23 on Block 2(c) in 164 ft of water a mile north of the Kairi-1 oil and gas discovery on the same block.

BHP said, "The Canteen well has demonstrated a lateral extension of the accumulation, and further appraisal drilling will be required to define the level of reserves."

Canteen-1 was drilled to 7,070 ft TD and encountered 700 gross ft of hydrocarbon-bearing sands that included 200 ft of net oil pay and 179 ft of net gas pay. The well was tested at a rate of 3,700 b/d of 33° gravity oil from a 60 ft interval through a 1 1/8-in. choke.

BHP said, "Log and test data from Canteen-1 indicate a high quality reservoir formation similar to that found in the Kairi-1 well." Kairi-1 flowed 3,000 b/d from a hydrocarbon column that included 235 ft of oil pay and 322 ft of gas pay.

Philip Aiken, BHP Billiton president and CEO, said, "We will look to fast track the development, which, given the relatively shallow water and proximity to the coast, could be in production within 2-3 years."

An appraisal drilling program will continue. BHP is operator with a 45% interest, Elf Petroleum Trinidad BV has 30%, and Talisman Energy Inc. 25%.

BHP Billiton is jointly listed in Australia and the UK as BHP Billiton Ltd. and BHP Billiton PLC respectively.

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