Oil Prospects Good!
03 August, 2005 - Belmopan
Today, at a special sitting of the House of Representatives, Prime
Minister Said Musa updated his colleagues and the Belizean public on the
results of preliminary drilling for oil by Belize Natural Energy Limited
and its partners in the Spanish Lookout Area of the Cayo District.
The Prime Minister confirmed that one of the zones tested resulted in
naturally flowing oil at a constant rate and pressure, producing 500
barrels per day.
On June 3rd, 2005, after prolonged studies and repeated tests including
seismic exploration, local exploration company Belize Natural Energy
Limited, with its partners Aspect Energy LLC and CHx LLC, commenced
exploration drilling in the Spanish Lookout area of the Cayo District.
After approximately 30 days of drilling, the well has been secured, and
testing has commenced. Fluid recovery from two prospective zones has
taken place, with the second revealing 95% oil recovery. This oil is of
an API gravity of approximately 38 degrees and is testing at an initial
rate of 500 barrels per day.
Additional testing over the next few months will be required to
determine the commercial viability of this site to ascertain if the oil
recovered is originating from a large or small reservoir. Belize
Natural Energy Limited and its partners also expect to drill an offshore
confirmation test and hope to be able to declare commercial production
after testing is concluded.
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.
'All indications from the start of drilling to today continue to be
positive,' confirmed an official of the company.