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#19336 - 06/05/05 04:35 PM Belize Natural Energy Limited set to drill for Oil and Gas
Marty Online   happy
Belize Natural Energy Limited set to drill for Oil and Gas

Belmopan - 03 June, 2005.
Today in Belmopan, Belize local exploration Company Belize Natural Energy Limited formally announced its commencement of drilling operations to explore for Oil and Natural Gas. The exciting news is the culmination of three years work in Belize where the Company has spent much time and money developing drilling prospects.

Company President Ms. Susan Morrice spoke today of her absolute joy and the anticipation of the project for the Company and for the People of Belize. Ms Morrice stated “Almost 20 years ago I came to Belize first to explore the potential for Natural Resources. The 20 years has taught me much about the great geological intricacy of the Country and I am eagerly looking forward to the potential of a drilling program.”

She said while it is a time of great joy it was also a time for a moment of reflection as almost a year ago her working partner in exploration in Belize the late Michael Usher died. She stated “Mike really loved this Country; he wanted so much to have the Natural Resources of the Country developed like a great beacon for the Country to enjoy. Having worked most of his life outside Belize in the oil and gas industry he had a great sense that there were great possibilities in this Country. In fact he convinced all of us to keep looking, so therefore it is completely appropriate that this first well to be drilled will be named the Mike Usher #1 Well.”

Leading Geologist and Company Director Mr Jean Cornec stated “I have had a life long interest in finding potential natural resources in Belize. It is with great joy today that we can formally announce a major step towards the finding of these much needed resources for the Country.” He went on to explain that the work program over the last two years has been busy. A total of 134 kilometers of 2D seismic lines were acquired in the first half of 2004. The data has now been processed and interpreted. There was significant improvement in data quality from the old Chevron data and we now have mapped the geology with greater confidence and outline prospective drill sites.

A potential 3,000-acre structural closure has been discovered and mapped in the Yalbac and Hill Bank formations in the area of Spanish Lookout. Such structure could conservatively yield over 25-50 million barrels of recoverable oil. This figure does not include closures at shallow depths that add to more than 1,000 acres with additional potential reserves of 12 - 25 million barrels of recoverable oil. It is hoped that the drill site can test both closures.

The further seismic program over 60 kilometers was completed in the last quarter of 2004 and early 2005. During November and December 2004 approx 30 Kilometer of this data was collected and initial analysis shows the better definition of the original 3,000 acre structure with other prospects emerging. Final collection of data in other locations is ongoing through the second quarter 2005 and should be completed and analyzed by end June 2005 to coincide with the results of the drilling program in Spanish Lookout.

Mr Paul Marriott, International Drilling contractor and Director in Belize Natural Energy Limited is heading up the drilling operations on the ground in Belize. He commented “ Since our first visit to Belize some three years ago we have been looking forward to this time. We have selected the best prospects from the geological information together and brought forward a well developed and highly skilled program to ensure that we can have the best opportunity to get production in Belize.

Operationally and logistically this has been difficult but I have to state that the levels of co-operation and goodwill that we have encountered have been outstanding and it has been a pleasure to prepare to work I this great part of the world.

He went on to state “Although there has been much disappointment over drilling operations in the past in Belize, like all technology much has moved on and new techniques are available to assist us. Additionally, the information from previous drilling operations is never wasted and we know that this information has helped to shape and define our work program.”

Sheila McCaffrey, Director of Belize Natural Energy Limited stated that “A budget estimate of the costs involved is $6.00 million from outside investors and working interest partners for the purposes of drilling and completing the test areas identified in the seismic. Exploration success would require an estimated additional $10-15 million in development expenditures to support an initial production rate of 3000-5000 barrels of oil per day. This in turn would generate $1-2 million per month in cash flow that would then be adequate to support a drilling program that could grow through internal cash flow, we obviously have much to do to create this potential but this work is a start in the right direction.”

She went on to state “Since we commenced operations in Belize over three years ago we have been made to feel extremely welcome, we have taken time to understand the economic and geological needs of the area, we are very excited about the possibilities for the people of the Country and we hope and pray over the next weeks and months we will have further updates for everyone.”
Sheila summarized the potential for the project as follows:

Identification of ready-to-drill prospect in Spanish Lookout area, Belmopan, with oil bearing reservoirs at shallow depths that have not been stimulated with modern techniques. It includes one well, Eagle#1, drilled in 1994 that presently flows gassy oil when surface valve is opened.

Potential for light/high grade 40º API gravity oil in the project areas.
Potential natural gas.
Ready market for both crude oil and natural gas.

Belize Natural Energy Ltd originally acquired a 463,000 acre exploration license onshore Belize, this acreage has been added to and a total of 478,000 acres is now available for exploration under a Production Sharing Agreement (PSA) with the Government of Belize signed in Jan 2002. In July 2004 an additional acreage from Block 5A (adjoining to original) was granted bringing the acreage to 595,000 acres.

Working partnership with CHx Capital LLC, Denver, Colorado

CHx Capital and its affiliate Aspect Energy LLC agreed a strategic partnership with Belize Natural Energy Ltd. CHx is an investment Company directed by Mr Alex Cranberg who founded and owns 70% of Aspect Energy LLC. Alex's experience with Aspect LLC is very pertinent to the significance of his investment in the Belize project. Aspect Energy LLC is a substantial, privately owned exploration and production company operating primarily in the Texas and Louisiana Gulf Coast area. The Company is focused on exploratory drilling backed by extensive analysis of 3-D seismic data.

#19337 - 06/05/05 04:40 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
papashine Offline
very interesting indeed!
Reality..What a concept!

#19338 - 06/06/05 02:54 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
silkpainter Offline
Drilling for oil and gas isnt as great as its cracked up to be.
-Lee Vanderwalker-Alamina

#19339 - 06/06/05 06:12 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
reaper Offline
There goes the neighborhood! cool

#19340 - 06/08/05 02:53 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
Laguna Punta Offline
...oil field trash and Texans!!! :rolleyes:
Gone fishing!!

#19341 - 06/09/05 07:31 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
Sir Isaac Newton Offline
which is worse? (hint they drive pickups)
Check out my site: www.ambergriscayerealestate.net

#19342 - 06/09/05 08:46 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
Ernie B Offline
Hey SIN, Thanks for your endorcement of the San Pedro Social Club, on another thread.


Gun Control is Hitting Your Target.

#19343 - 06/20/05 01:43 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
SP Daily Offline
Looking for oil in Spanish Lookout
by Adele Ramos

SPANISH LOOKOUT, Cayo, Wed, Jun. 15, 2005

About 28 workers, a mix of local and foreign, are working around-the-clock in Spanish Lookout, Cayo District, drilling for oil and natural gas at the 51stoil well in Belize, named Michael Usher #1 after their Belizean partner, who died a year ago.

The Belize Natural Energy Ltd. (BNE), which the Government of Belize has licensed to explore 595,000 acres of Belizean territory, has been undertaking the exploration since the start of the month.

Currently, the team is drilling at 1,800 feet, and they plan to drill up to 5,000 feet, which they hope to reach in July. By then, they should be able to determine whether they can begin producing oil in Belize on a commercial scale.

Sheila McCaffrey, BNE’s director, said, “There are estimations that say 15 to 20 thousand barrels of oil a day would meet the entire energy needs of the country…”

She told us that just 100 miles due east of where they are drilling at Spanish Lookout, there is an oil well called the Laguna Blanco well, and to the north in Mexico, there are prolific oil fields.

“We have evidence of oil in Belmopan; there is evidence of oil in Calla Creek. There was also natural gas found [near border with Melchor]…” said leading geologist and company director, Jean Cornec.

“The Yucatan peninsula has had, traditionally, prolific oil fields all over it… A low to medium oil field would make a huge difference for the country,” McCaffery added.

She informed Amandala that the drilling is the culmination of three years of work in the country. The work included collecting data from all previous 50 oil drillings here, collecting data from other parts of the world, reviewing satellite imagery, analyzing rocks, and conducting two seismic programs, one from January to August 2004 and the other from October 2004 to February 2005.

Seismic shoots are done by pushing shock waves into the earth and recording their reflections to determine the characteristics of rock formations, hence giving an indication of whether the right geology exists for oil and natural gas formations.

“You may know that 50 wells have been drilled in Belize, scattered all over the place, some onshore, some offshore,” Cornec said. “None has been drilled in this area. Some have been drilled in the north on the limestone ridge called the Yalbac Ridge [Cayo]. Actually, the first well that was drilled in Belize was drilled at Yalbac Number 1. Then, there was another one drilled back in 1990 to the north of us…”

He added that 7 wells were drilled in Belmopan in 1938, and 6 of them were found to have oil but were deemed uneconomic to explore. Still, according to McCaffery, the team may be looking at the Belmopan wells again in the near future.

“Something that is uneconomic one day can become economic the other day, depending not only on the type of oil but also the types of technology that can be applied to make oil, which is in very thin resin walls, flow to the wells…” Cornec commented.

He said that there is “very great [oil production] potential to be developed” in Belmopan.

For now, though, they have chosen to begin with the Spanish Lookout site, which, Cornec said, “shows beautiful anticline,” which is a convex fold in rock, with the central part consisting of the oldest rock.

“Probably 75% of all the oil reserves on the planet comes from such type of anticline, so we have high hopes that we’ll find something here too, but we need to drill it to find out,” Cornec told us.

McCaffery said that this is the first anticline to be drilled in Belize.

How confident are they that they are going to find oil here in enough quantities to justify their $6 million investment?

“That is the 6 million question,” McCaffery responded. “Can it be found? That is why we’re drilling, but there’s no ‘yes’ on that.”

She added: “We’re confident that we can do it, but Mother Nature has to work with us. Everybody has to kind of all the gods have to come together, at the moment for it all to pull together and work perfectly for us and we’re aiming to do that.”

Even if they don’t find commercially exploitable oil, said McCaffery, they would have obtained valuable geological information.

According to her, they would need to invest another $10-15 million to develop their operations to support an initial production of 3000-5000 barrels of oil per day. The $1.2 million a month cash flow that this could generate would, in turn, support the drilling program in the near term.

The project is being undertaken through a production sharing agreement between the Government of Belize with BNE. Under the agreement, GOB would collect royalties on a sliding scale (depending on the level of production) and the Mennonite community, which owns the land on which BNE is drilling, would collect 5% of the royalty payments to the Government.

Cornec said that it is still a mystery how oil was formed in Belize. He said that so far, they have not been able to determine the source rocks that form oil when exposed to high pressure and temperature.

He explained that they also hope to find exploitable natural gas, which, he said, is usually found at the same layer with oil.

BNE is led by 4 directors: John Cornec, who worked through the UN in the Geology Department in Belize for over 10 years and mapped Belize’s geology in the 1980’s; Susan Morris, BNE president, who has worked in Belize for the last 20 years looking at natural resources and was involved in two previous exploration efforts in Belize; Paul Marriott, the drilling contractor, who is from the UK; and Sheila McCaffrey, who has worked with the project for the last 3 years. Their Belizean partner was Michael Usher, who reportedly encouraged the team to explore oil possibilities in Belize. He died last June, and is represented by the Usher family and his brother Marion Usher, CPA.

In a GOB press release issued last week, Marriott was quoted as saying that “Operationally and logistically, this has been difficult but I have to state that the levels of cooperation and goodwill that we have encountered have been outstanding, and it has been a pleasure to prepare to work in this great part of the world.

“Although there has been much disappointment over drilling operations in the past in Belize, like all technology, much has moved on and new techniques are available to assist us. Additionally, the information from previous drilling operations is never wasted, and we know that this information has helped to shape and define our work program.”

#19344 - 06/23/05 12:30 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
ilCATTIVO Offline
Texas has enough 5-30 barrell a day wells that have already been shut down due to the high cost of operating them....can't imagine they'll come here to punch more? I know...our ranch is dotted with these low producing wells that are no longer run, not due to lack of oil but the expense. SIN-I guess the Texans will have to come and invest their money in time share purchases, oops....I mean long term leases so you can avoid our 15% tax that you too should be paying!

#19345 - 06/23/05 03:03 PM Re: Belize Natural Energy Limited set to drill for Oil and Gas
Katie Valk Offline
BTW, the Belize Times headlines today report they hit oil and capped the rig. Truth is they didn't and are still drilling.
Belize based travel specialist

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