7 News Belize

Prospects for Oil in Gallon Jug & Calla Creek
posted (January 29, 2010)

But there are other companies and areas in the exploration stage. There’s RSM in the Gallon Jug area and BNE which is exploring the Calla Creek area. One area in Calla Creek famously has oil seeping out of the ground. Cho discussed the status of those oil exploration ventures starting with Gallon Jug.

Andre Cho,
“They found a number of prospects and they drilled. Unfortunately those two wells were dry, they have spent about ten million U.S. dollars on those two dry wells and what they want to do now is to shoot some more seismic to try and firm up the other prospects before they drill them because it is always hard to get your investors to put up money to drill after you’ve drilled two dry wells.

Calla Creek is in BNE’s contract area. They drilled a well there, they didn’t find any oil, they only found oil that is seeping up at the surface and how BNE came to Belize was because of the water well that Peter Morrice drilled found some oil in it and the oil they found in the Cayo West Number One Well which is at Calla Creek is that same oil that has seeped up from somewhere at shallow depths, about 400 feet.

They did a core well just beside the Cayo West Number One to try and see what is going on, study the rocks, and right now they are drilling another well but that oil that is there is seeping up from somewhere. We thought it was in Belize, that is why they drilled the Cayo West Well Number One to about 3,000 feet but it looks like its coming from somewhere else now.”

And to round it off, a few notes of clarification on the Never Delay Oil Field. Government has not yet signed off on a commercial declaration for that field because an Environmental Impact Assessment is still being reviewed by NEAC.

Never Delay #1 oil well was drilled in early 2008 and BNE appraised the discovery over 18 months – leading them to declare it commercial in November of 2009. Though it is spread over a larger surface area than Spanish lookout, at this point the Never Delay reserves are considered to be about five million barrels – only a fraction of the 14 million barrels estimated at Spanish Lookout. The rate of production is also less at 35 barrels a day compared to 4,200 per day at Spanish Lookout.

Home | Archives | Downloads/Podcasts | Advertise | Contact Us

7 News Belize