Key unlocks Suriname drilling phase

SURINAME partners Key Petroleum and Tullow Oil have started a 10-well drilling program in the Uitkijk onshore permit in Suriname, South America.
Key unlocks Suriname drilling phase Key unlocks Suriname drilling phase Key unlocks Suriname drilling phase Key unlocks Suriname drilling phase Key unlocks Suriname drilling phase

Perth-based Key, which listed in April, said Tullow as operator spudded the first well on Monday evening and expects to take 10 days to reach total depth.

Key holds a 1.75% interest in two onshore Suriname permits, Uitkijk and Coronie, covering about 3300 square kilometres.

Tullow and state-owned Paradise Oil are free-carrying Key through the program, which comprises up to 25 wells, to the value of $US8.5 million ($A9.6 million).

Both permit areas are adjacent to Suriname’s main producing oil fields, Tambaredjo and Calcutta, which collectively hold more than 1 billion barrels of oil.

Key’s interest follows its acquisition of 50% of Portsea Oil & Gas NL, a non listed entity, which holds 3.5% interest through an arrangement with Tullow Oil.

Key managing director Ken Russel said his company would participate in drilling 27 exploration wells in the next 12-18 months.

“With a ready market in Suriname for produced oil and a strong export market in Trinidad and the United States for any surplus, the prospects for early production are exciting,” Russell said.

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