DOUGLAS, UK – Bahamas Petroleum Co. (BPC) says it has completed studies ahead of a first planned drilling campaign offshore the Bahamas.
In December, a new Petroleum Act and associated regulations concerning oil exploration was submitted to the Bahamian parliament’s House of Assembly. A second reading is due during the coming weeks, followed by a consultation phase and third reading and subsequent passage via the senate into law.
BPC says it remains committed to starting drilling activities for its first exploration well as soon as possible. In anticipation of the new Petroleum Act becoming law, the company is discussing with the government what constitutes a safe and responsible planning period for a well and the subsequent commencement of operations.
In the second half of 2014, the company commissioned a series of fluid inclusion analyses from Fluid Inclusion Technologies, based on cores and cuttings from three historical wells drilled in the Bahamas that offset BPC’s acreage.
All three wells demonstrated the presence of oil migration with a signature suggestive of light oil across multiple horizons. The analyses suggest an active, local oil-generative source rock capable of generating large hydrocarbon volumes, BPC adds.
In addition, multiple source rocks are likely present, based on API gravity variations within the inclusions.
BPC has completed a program to re-engineer its first planned well, taking into account 3D seismic data, an optimized drilling location, and comparison of drilling performance in the Bahamas and similar wells elsewhere in order to establish “technical limits.”
It has also worked with various contractors on including modern technologies in the well equipment design in order to maximize the rate of penetration (ROP).
Last year the company engaged a rig broker to consider rig options, in light of globally declining rig rates and increased availability. As a result, the cost of the first well is expected to be lower than previous estimates, at $50-60 million.
BPC believes the minimum field size for an economic development would be less than 200 MMbbl, and would therefore be profitable even at lower oil prices.