Cory Moruga Block (Cory "E") : 7,442 Net Acres

Introduction

The Cory Moruga Block is located onshore in the south central area of Trinidad and is approximately 3,012 hectares in size and is adjacent to the central block, owned jointly by British Gas Trinidad and Tobago and Petrotrin. The discoveries in the central block include the currently producing Carapal Ridge field, as well as Baraka and Corosan which identified approximately 700 bcf of natural gas from the deeper Herrera Sands. Neither the Corporation nor AJM have independently verified this identified amount. The Cory Moruga Block also has a history of shallow oil production. Ten wells were drilled in the 1950’s identified eight hydrocarbon bearing sands in the Herrera formation. PERL’s farm-in for 25% interest in the Block was approved by the Ministry of Energy of Trinidad and Tobago on 30th July 2008.

Although the Cory Moruga Block contains no proven or probable reserves as defined by National Instrument 51-101 – Standards for Disclosure for Oil and Gas Activities, approximately 113,677 barrels have been produced to date from two wells. Oil gravity ranged between 29 and 32 degrees API.

Prospects and Leads

This block lies within the Middle Miocene fold and thrust belt of the Southern Sedimentary Basin. As such, the block is considered attractive for large potential hydrocarbon reserves. The Block lies adjacent to a significant gas and condensate discovery by Aventura (Vermilion Resources Limited) in the Central Block, which tested five separate intervals with a combined daily rate in excess of 60 million cubic feet of gas and approximately 2,000 barrels of condensate. British Gas Trinidad and Tobago has since purchased Vermilion’s interest in the Block.

Several prospects and leads have been identified on the acreage block based upon interpretation of a 3-D seismic survey completed in 2007.

Firecrown – 1 Exploration Well

Firecrown – 1 was drilled to a total depth of 10,331 ft. and found approximately 650 ft. of hydrocarbon indicators in two (2) separate zones in the Herrera Formation. Mechanical problems precluded testing of these zones and plans are underway to redrill this well.

Snowcap – 1 Exploration Well

Snowcap - 1, the second well drilled on the Cory Moruga block was designed to evaluate the production potential of three different play concepts namely in the Eocene, Footwall Herrera and Hanging Wall Herrera zones. Following drilling to TD at 8,600 ft., four potentially productive zones were tested. The primary zone of interest (Hanging Wall) in the Herrera Formation tested 37 - 39 API gravity oil at rates up to 1,450 bopd and gas at rates up to 6.2MMcf/d. This zone was flow tested over a five (5) day period and averaged approximately 645 bopd and 3.0MMcf/d gas. The final flow rates were stabilized at 775 bopd clean oil and 6.2MMcf/d gas. Tubing Head Pressure averaged 1,230 psi. The secondary deeper targets, namely the Eocene and Footwall Herrera zones produced little or no hydrocarbons in commercial quantities.

The Company views these results as significant and appraisal wells are required to determine the areal extent of the productive reservoir, including structural positions of oil leg and gas cap, as well as potential hydrocarbon column.


Follow up Opportunities

In addition to the Snowcap - 1 discovery and the Firecrown - 1 well, the Company has several high impact seismically defined drilling opportunities on the block and regulatory approval is being sought to conduct future drilling of these prospects.


Working Interest and Partners

PERL has a 16.2% working interest in the block, Primera Oil and Gas Limited (POGL) a 33.8% working interest and Parex (Operator), 50%. Territorial Services Limited owns 100% of POGL and also has an approximate 42.8% shareholding in PERL.

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Photo Showing Snowcap Location (Photo by B.Lynam)