Third-party petrophysical analysis of log data has indicated some 165 feet of net oil bearing reservoir sands, the company said in a statement.
Drilling is meanwhile marked at a depth of around 3,850 feet, towards the target depth of 4,550 feet. The well remains on-track for completion by June 23 and production testing operations are planned to follow in July, the company added.
“Initial petrophysical analysis of the top two sections of the Saffron-2 well indicates 165ft of net oil-bearing reservoir sands,” said chief executive Eytan Uliel. “Whilst these sections are not the primary targets of the well, it is encouraging that the well has already demonstrated production potential.
“Drilling continues towards the primary Lower Cruse reservoir targets, where the ultimate producibility of the well will be determined.”
The company has previously guided that, if Saffron-2 is successful, the well could produce between 200 to 300 bopd resulting in US$1.8mln to US$2.6mln of net cash flow per year.
Beyond that, the success case sees the Saffron field capable of producing 1,000 to 1,500 bopd by the end of 2021.
A full field development could see peak production rates of up to 4,000 bopd and yield more than US$25mln of cash flow.