| Mon 9 Apr 2001, 0:00 | | Ceiba Field - Encouraging Development Drilling Res |
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Energy Africa Limited
Incorporated in the Republic of South Africa
Registration number: 1995/07140/06
Energy Africa has 15% interests in the Ceiba oil field and in the Blocks G and
F exploration licences, offshore Equatorial Guinea. Triton Energy today
provided an interim operations update for the Ceiba Field, an extract of which
is appended.
Adrian Nel, acting Managing Director said "the results of Ceiba-7, 8 and 9
development wells have been encouraging in terms of reservoir continuity and
reservoir quality and a deeper oil-water contact on the western flank of the
field will increase reserves in this area. The Ceiba Field itself continues to
perform very satisfactorily."
9 April 2001
For more information about Energy Africa see: www.energyafrica.com
Enquiries:
In Cape Town:
Energy Africa
Adrian Nel
+27 21 400 7602
Corporate Image
Tamra Veley/Alice Jenner
+27 21 426 1233
In London:
College Hill
Nicholas Williams
+44 20 7457 2020
Extract from text of announcement by Triton Energy Limited:
"TRITON'S CEIBA FIELD DEVELOPMENT WELLS FIND NEW OIL ACCUMULATION; INCREASE
FIELD SIZE AND RESERVES
Acreage Prospectivity Enhanced; Wildcat Well Scheduled in May
Company Provides Interim Operations Update
DALLAS, TEXAS - April 9, 2001 - Triton Energy Limited (NYSE: OIL) reports that
its recently drilled development wells in the Ceiba Field offshore Equatorial
Guinea have extended the field size to the northwest, encountered a new, deeper
oil pool and increased estimated field reserves.
"We are extremely pleased with the progress we are making on our Ceiba Field
development program," said James C. Musselman, Triton President and Chief
Executive Officer. "The Ceiba-8 and Ceiba-9 wells indicate this field has
significant growth potential. Both Ceiba-8 and Ceiba -9 have shown us that our
acreage on Blocks F and G clearly holds sizable upside surprises, so we are
reevaluating it based on the very encouraging results of these wells."
Ceiba-8 Well Encounters Thickest Sands to Date;
Finds New Oil Accumulation
Triton's Ceiba-8 production well, the best well drilled in the field so far,
encountered the thickest net pay to date in the Ceiba Field. Ceiba-8 penetrated
a new, deeper pool in a reservoir not seen in any previous Ceiba wells.
Located on Block G in the Gulf of Guinea, Ceiba-8 penetrated 413 feet of net
oil-bearing pay, including 98 feet in the new pool, based on the analysis of
drilling, wireline logging, downhole pressure measurements and reservoir/fluid
samples. Additional analysis and appraisal drilling will be required for the
Company to determine the significance and potential of the new oil pool, which
has a pressure that is 400 psi higher than the pressure of the primary Ceiba
oil pool.
The Ceiba-8 well was drilled in the central portion of the Ceiba structure in
an area previously thought to have uncertain reservoir potential. Pressure
measurements in the Ceiba-8 well confirm reservoir connectivity with current
producing wells and that the field is performing as expected. Based on the
well's results, the Company is refining its Ceiba Field geologic model to
redetermine reservoir thickness, quality and extent in the main pool.
Ceiba-9 Well Encounters Oil, Increases Field Size
In addition, Triton's Ceiba-9 well, planned as a water-injection well, found
174 feet of net oil-bearing pay and an interpreted oil-water contact on the
Ceiba Field's north and west flank that is 374 feet deeper than the oil-water
contact found on the south flank of the Ceiba Field.
The Company believes that the results of the Ceiba-9 well will extend the known
limits of the field to the west and northwest, which will significantly
increase field reserves from year-end 2000 estimates. The Company plans to
determine the size of the extension and reserves increase with a future
appraisal drilling program. (A map of the Ceiba Field is available on Triton's
web site, www.tritonenergy.com. Click on News Releases.)
Ceiba-7 Well Confirms Productivity of Laminated Sands
Triton's Ceiba-7 production well was the first well to be completed and tested
in the laminated-sand facies. Test results confirm that the laminated sands
have good deliverability and reservoir continuity and connectivity. At year-end
2000, the Company had booked no reserves attributable to the laminated sands in
the Ceiba Field.
"Thanks to the findings of the Ceiba-7 well, it is very likely that the field's
laminated sands will make an important contribution to future Ceiba Field oil
reserves," said Musselman. "Ceiba-7 is the first well in the field to be
completed using an open-hole gravel pack technique, which will enhance the oil
deliverability in these laminated-sand reservoirs. We also anticipate using
this method to complete future wells."
The Global Marine R. F. Bauer drillship, which is batch drilling the Ceiba-9
and -10 wells, will resume drilling the Ceiba-10 as a producer during the next
two to three weeks. After drilling Ceiba-8, the Sedco 700 semisubmersible
drilling rig is moving to the eastern portion of the field to drill a second
water injector, Ceiba-11.
Triton's current development plan calls for 14 wells to be drilled and
completed in the Ceiba Field - 10 producers and four water injectors - by early
2002.
"Our immediate focus is on Ceiba development and generating substantial cash
flow," said Musselman, "so we will sidetrack the Ceiba-9 well downdip as a
water injector to maintain reservoir pressure and enhance oil recovery as
planned."
Block G Exploration Well Scheduled in May
The discovery of a deeper oil-water contact in the Ceiba-9 well and revised
seismic calibration data provide Triton with the technical basis for a new
geologic model for the Ceiba Field, which has positive implications for nearby
exploration prospects scheduled to be drilled later this year.
After reviewing exploration prospects and reassessing its exploration strategy
on Blocks F and G, Triton plans to resume its exploration drilling program by
spudding a wildcat well on Block G, the G-5 well, which is scheduled for May.
The G-5 well location is being finalized.
Ceiba Field's Current Gross Production
At 45,000 Barrels of Oil per Day;
Gross production from the first four Ceiba Field wells is currently at about
45,000 barrels of oil per day (BOPD), or about 32,000 BOPD net to Triton. In
March, field production averaged about 42,000 BOPD, or about 29,000 BOPD net to
Triton, due to well testing and planned shut-in periods.
About Triton
Triton has an 85% working interest in and is the operator of Block G and the
adjacent Block F offshore Equatorial Guinea, which together encompass an area
of approximately one million acres. Triton's Ceiba Field is located in Block G
of the Rio Muni Basin, about 22 miles offshore and 150 miles south of the
country's capital, Malabo, and off the shore of the city of Bata. Triton's
partner in the blocks, Energy Africa Ltd. of South Africa, has the remaining
15% working interest.
Triton Energy Limited is a Dallas-based international oil and gas exploration
and production company with major oil and gas assets in West Africa, Latin
America and Southeast Asia. More information about Triton may be found at the
Company's web site, www.tritonenergy.com.
SAFE HARBOR STATEMENT: Certain statements in this news release, as well as
written and oral statements made from time to time by Triton and its
representatives in other reports, filings with the U.S. Securities and Exchange
Commission (SEC), news releases, conferences, teleconferences or otherwise,
regarding future expectations and financial performanc"forward-looking statements" within the meaning of the U.S. Securities
Litigation Reform Act. These "forward-looking statements" include statements
regarding future revenues, expenses, capital expenditures, cash flow and
production, drilling schedules and the number of wells to be drilled, and
estimates of production rates and reserves from the Ceiba Field.
These statements are subject to various risks and uncertainties, such as the
timely completion and cost of exploration, appraisal and development
activities, contract performance by third parties and quarterly fluctuations in
results. These are discussed in detail in the Company's SEC filings, including
its report on Form 10-K for the year ended December 31, 2000. Actual results
may vary materially. Triton is undertaking no obligation to update any
forward-looking statements or to disclose the fact that its internal forecasts
may have changed.
The SEC permits oil and gas companies, in their filings with the SEC, to
disclose only proved reserves that a company has demonstrated by actual
production or conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. In this news
release, references to reserves, unless otherwise specified, include not only
some portion of proved but also probable and possible reserves which the SEC
strictly prohibits including in our SEC filings. Investors are urged to
consider closely the reserve disclosure in our Annual Report on Form 10-K for
the year ended December 31, 2000. You can obtain a copy of this form by
contacting our Investor Relations Department at Triton Energy, 6688 North
Central Expressway, Suite 1400, Dallas, Texas 75206, telephone number (214)
691-5200, or from the SEC by calling 1-800-SEC-0330.
Investor Contact:
Crystal C. Bell,
Vice President,
Investor Relations and Corporate Communications
Triton Energy
(214) 691-5200
Media Contact:
Mark Semer
Kekst and Company
(212) 521-4802"
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