Asset Profile: Saffron Discovery

Summary Information

Asset Saffron Discovery
Location Onshore, South-west Trinidad
Ownership 100%
Operator Challenger Energy
Stage Appraisal of existing discovery (Saffron 1)
Asset Type Licence
Recoverable Resource ~2.5 mmbbl (mostly Saffron on Bonasse licence)*
Current Production Saffron 1 free flow but with no production completion
Cumulative Production Nil
Fiscal Regime Royalty
Tenure Bonasse expiry May 2039

* Subject to Challenger Energy review during balance of 2021

Asset Description

  • Saffron-1 well (March 2020) resulted in a discovery – Located in the South West Peninsula of Trinidad

Technical Highlights

  • Saffron-2 appraisal well May/June 2021, to assess field productivity
    • High CoS given a drilling a known discovery, from the same location as Saffron-1
    • Ready to spud in May 2021
    • 30-day drilling timetable; production leads directly to sales
  • Successful Saffron-2 well will enable a full Saffron field development

Near-term Milestones

  • Saffron-2 Appraisal Well – June 2021
    • Production: 200-300bopd
    • Cost: $3m
    • CF: $1.8m – $2.6m p.a.
    • ROI: 200%+ | Payback <2 years
  • Initial phase post Saffron-2
    • Wells: 5-9 additional in 2021
    • Production: 1,000 to 1,500 bopd
    • Gross capex: $15m – 20m
    • CF: $8 – $12m p.a.