Canadian company discovers natural gas well

BRIDGETOWN, Barbados, January 24, 2008 – A Canadian company has discovered what is says is a significant natural gas well in Trinidad and Tobago.

Petro-Canada, which is carrying out a multi-well exploration programme in the country said the discovery in deepwater off the twin-island republic is one of two successes from two international exploration wells. The other was made in the United Kingdom sector of the North Sea.

The company said that based on well results and using local field recovery factors, the Trinidad and Tobago discovery could contain “in the range of 0.6 to 1.3 trillion cubic feet of contingent resources.” It however indicated that further appraisals have to be completed before the estimates are finalised.

“Petro-Canada will continue implementing the evaluation plan…the key objectives of which are to verify the resource base and establish economic viability,” the company said in a release.

Executive Vice-President of International and Offshore, Peter Kallos added, “this is an exciting result for us, because it is the first well in a four-well programme on Block 22.”

“The discovery validates our exploration model and further success on the Block could lead to a material development.”

Petro-Canada completed testing operations on the well in Block 22 on January 9, after reaching 1,712 metres below sea level. The company said that following the discovery, another two or three other separate prospects in Block 22 as part of its 2008 drilling campaign in Trinidad and Tobago.

“Exploration is a key part of our long-term growth strategy,” Kallos added. “Our drilling program last year yielded several successes, with these most recent discoveries among the more significant.”

Petro-Canada has net production of 65 million cubic feet per day in Trinidad and Tobago through a 17.3% interest in the North Coast Marine Area gas project, which supplies gas for the Atlantic LNG project.