Sherritt Provides Update on its Oil and Gas Operations December 22, 2017.
Sherritt International Corporation (“Sherritt”) (TSX:S) today announced that it has extended the timetable for its current activities on Block 10 to the first quarter of 2018. The decision allows the Company to evaluate drilling results completed to date and determine its best option to reach the target Lower Veloz reservoir, in which a discovery well drilled in 1994 had briefly tested at a rate of 3,750 barrels of oil per day.
“While we had expected to complete drilling on Block 10 before end of year, we have decided to take a prudent approach instead of pushing ahead given the challenges we have experienced in the lost circulation zone above the target reservoir,” said David Pathe, President and CEO of Sherritt International Ltd. “We expect to resume drilling in the New Year after we have evaluated our options and determined our best course of action. Our recent experience has not changed our view about Block 10’s potential.”
Block 10 is an oil and gas exploration concession licensed for 25 years under a Production Sharing Contract (PSC) between Sherritt and Cuba’s state oil company, Cubapetroleo S.A. (CUPET). Block 10 covers an area of 261km2 in the Bay of Cardenas located on Cuba’s north coast.