RE:Liberia: New Drill Schedule for Oil Block Lb-13 Confirmed Liberia: New Drill Schedule for Oil Block 13 Confirmed
Canadian Overseas Petroleum Ltd revealed on Wednesday that the Mesurado-1 exploration well located in Liberia is planned to spud in late 2016 to early 2017.
The oil exploration company said the well is currently estimated to be drilled for a total cost of US$120 million.
A release posted on the company's website asserted that the exact timing of the well will be dependent on rig availability and on timing of contractor's capability to operate in the country.
Canadian Overseas holds a 17% working interest in Block LB-13, offshore Liberia, with ExxonMobil Liberia, the operator holding the remaining 83% working interest.
London listed shares of Canadian Overseas was trading 14.3% higher at 3 pence and the dual listed share advanced some 16%, up 0.42p to 3.05p each, while in Toronto the stock was unmoved.
ExxonMobil delayed drilling and exploration off the cost of Liberia last year due to the outbreak of the deadly Ebola virus that killed more than 4,000 Liberians.
The company explained that Mesurado's primary goal is to prove commercial volumes of hydrocarbons. It will be in a deep-water location and will target Cretaceous Santonian-age reservoirs.
Arthur Millholland, COPL's chief executive, in a statement, said: "This is a positive first step in proceeding with the drilling of the Mesurado-1 well, subject to overcoming the remaining logistical issues related to the need for participation from third party contractors.
He added: "While the delay to the exploration program has been frustrating for COPL and its shareholders, we are pleased to now have a timetable to work towards exploring this highly prospective acreage.
He said the well will be drilled under the second Exploration Phase, Mesurado-1 in late 2016 to early 2017 with the primary goal of proving a commercial quantity of hydrocarbons in the Cretaceous Santonian-age reservoirs.