Bayfield Energy Plunges on No-Oil Show

PUBLISHED: 14 May 2012 @ 16:22 | Comments (0) | More info about Kenneth G. Mondero

Shares of exploration and production company Bayfield Energy Holdings (LSE:BEH) plunged 25% on the Alternative Investment Market following the company’s announcement its EG7 exploration well in Trinidad & Tobago encountered water instead of oil.

The second exploration well in the Galeota Licence Area, EG7 was drilled at a depth of 5,280 feet and encountered all but one reservoir interval to be water bearing “in the offset well EG1”, a successful well discovered in 1964 and about 800 metres of EG7.

Reduced Resources

Following the results, the management of Bayfield Energy decided to rewrite its contingent resources volume, shedding off 5.9 million barrels to reflect a net 2C of 24.67 million barrels.

The second well, spudded on 4th April, was not able to replicate the oil discovery made on the first one. The EG8 encountered 107 metres of gas and 69 feet of oil, as announced by the company on 13th March.

Bayfield Energy holds 65% interest in the Galeota Block, which covers 122 km2 of shallow waters southeast of Trinidad where the oil producing Trintes field is located.

“Following the detailed logging and sampling of the shallow reservoirs, the well has been sidetracked and is drilling ahead to the east to evaluate deeper exploration targets in a structurally optimal position,” Bayfield Energy stated of the status of the EG7 well.

The next well to be drilled as part of the seven-well programme committed by the company is scheduled in the third quarter of this year.

Meanwhile, Bayfield Energy stated it is reviewing alternative ways to raise additional funding of its drilling programme, following the disappointing results of EG7.

Company Spotlight

Bayfield Energy is an independent oil and gas exploration and production company with a balanced portfolio of exploration opportunities, near-term development, and producing assets, with interests in South Africa and Russia, alongside the Trinidad and Tobago interests.

Established in 2008, the company joined trading on the Alternative Investment Market in 2011. At 2:30 PM GMT, shares of Bayfield Energy were priced at 33.50 pence.

References
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