Columbus, the oil and gas producer and explorer with operations onshore Trinidad, is pleased to announce the signature of a Production Sharing Contract with Staatsolie Maatschappij Suriname N.V ("Staatsolie") for the Weg Naar Zee Block, onshore Suriname.

Highlights

• Onshore block with a discovered resource of 24mmbbl (STOIIP)1 in a proven hydrocarbon province.
• Large block (900km²) with exploration potential.
• No signature bonus or upfront consideration.
• Company can control timing of appraisal/development work. Phase 1 Exploration Period (3 years) consists of G&G studies and 2 Extended Well Tests.
• Suitable for application of Enhanced Oil Recovery techniques used by Columbus in Trinidad.
• Complimentary to existing operations and on-strategy.

Leo Koot, Executive Chairman of Columbus, commented:
"The Company is delighted to have signed the Production Sharing Contract with Staatsolie for the Weg Naar Zee block, onshore Suriname ("WNZ"). Staatsolie have been seeking partners with experience in onshore field developments with secondary and tertiary recovery experience to commercialise the discovered oil resources. Columbus's experience in Trinidad will perfectly complement the existing Staatsolie oilfield production operation experience in Suriname.

We would like to thank Staatsolie for their support and assistance in signing the PSC and look forward to working with Staatsolie to make WNZ a success for both parties.  For Columbus, WNZ is a low cost, low risk entry into a block with an estimated 24mmbbl STOIIP in a proven hydrocarbon province, close to existing infrastructure. Provided the results from the extended well tests are as expected, the Company intends to fast track the development of the WNZ oil discoveries."

1  Source: Staatsolie http://opportunities.staatsolie.com/investment-opportunities/onshore-opportunities/

Background

Staatsolie, the state oil company for the Republic of Suriname, is the operator of a number of oil fields in Suriname and is also the holder of the Weg Naar Zee block ("WNZ"), onshore Suriname. In January 2019, Staatsolie commenced an Open Door invitation for various onshore opportunities and Columbus applied for a PSC over the WNZ block.  Columbus had expressed an interest in WNZ in mid-2018.

WNZ is an onshore block measuring approximately 900km².  It is located to the west of Paramaribo, the capital city of Suriname, and close to existing oil infrastructure (including the Tout Lui Faut oil refinery, which has sufficient capacity for any WNZ production). 

WNZ contains discovered oil in discrete sand bodies having a combined STOIIP of approximately 24mmbbl. The WNZ area has extensive 2D seismic data and exploration well information (some with  well test  data) which will assist in the exploration, appraisal and future development of hydrocarbons from WNZ.

In 2019/2020, Columbus intends to conduct a petrophysical update of the existing well data, perform a detailed reservoir evaluation study and perform an Extended Well Test ("EWT") of at least two separate stratigraphic oil bearing zones, with the intent of submitting a development plan for WNZ including those oil sands deemed commercial as soon as practical.

Link to Columbus Energy Suriname country profile