Equatorial Guinea approves Triton's plans for the Ceiba Field

Triton Energy Limited announced that the Ministry of Mines and Energy of the Republic of Equatorial Guinea has approved Triton's Plan of Development for the Ceiba Field. The Plan of Development provides for initial or phase one production of 52,000 bpd utilising a FPSO system.
James C. Musselman, Triton President and CEO said: "The government's prompt approval of the Ceiba Plan of Development demonstrates its continued strong support of our exploration and development efforts, as well as its commitment to fast-track development and accelerate oil production from the Ceiba Field. The next step in advancing Ceiba development is the finalisation of all major development contracts, including the FPSO, which we expect to be complete in the near term. "
"Based on discussions held to date with development contractors, we have moved up our development schedule and are targeting first oil production to occur by year end, approximately 15 months from discovery of the Ceiba Field. Triton possesses the financial and technical resources to quickly develop the Ceiba discovery. The opportunity to deliver early production and cash flow makes the Ceiba discovery one of the most exciting discoveries in Triton's history and the major focus of our 2000 capital spending program."

Selection of a FPSO-based development concept was designed to allow for accelerated development of the Ceiba Field. Specifications call for the FPSO vessel to provide storage for 2 mm barrels of oil and initial processing capacity of up to 60,000 bpd. The FPSO vessel can also be expanded cost effectively through the addition of incremental processing capacity, to accommodate up to 240,000 bpd.
As part of this initial phase of development, four sub-sea production wells are scheduled to be completed and connected through flow lines to the FPSO. The Ceiba-1 discovery well and the Ceiba-2 appraisal well are scheduled for completion work in 2000, and will be two of the four planned producing wells. Drilling and completion of the remainingtwo appraisal/production wells is planned during the year.
Acquisition of an expanded 1,025,000-acre (4,200 sq. km) 3D seismic survey is underway. The 3D seismic is designed to assist in delineating the extent of the Ceiba Field, identifying drilling locations for the appraisal/production wells, and better defining other exploration prospects on the licenses. The seismic acquisition program covers all prospective areas on Triton's Equatorial Guinea licenses, and is expected to be complete and available for evaluation late in the first quarter of 2000.

Triton has budgeted capital spending in 2000, excluding acquisitions, to total approximately $ 191 mm, an 89 % increase from the estimated $ 101 mm, including acquisitions of $ 6 mm, invested in 1999. The increase reflects anticipated capital expenditures of up to $ 122 mm for the development of the Ceiba Field and continued exploration and appraisal activity on the company's licenses in Equatorial Guinea.
This includes funding for the completion of a3-D seismic program now underway, the drilling of two appraisal/development wells and their completion as oil producers, the completion as oil producers of two wells drilled in 1999, related development cost, and the drilling of two exploration wells. Funds for the purchase of the FPSO have not been included in the 2000 capital spending program, as the vessel will likely be leased.
Of the remainder of 2000's capital program, $ 58 mm is allocated to continued development of the Cusiana/Cupiagua fields in Colombia and $ 11 mm to activities in other areas. Spending in Colombia will decrease by approximately 23 % compared with the estimated $ 75 mm invested in 1999, as development activities are largely complete. The Cusiana/Cupiagua capital-spending plan primarily encompasses development drilling in the Cusiana and Cupiagua fields, including drilling on the adjoining Recetor license block, which was acquired in 1999. Capital spending in 2000 for development of the company's interests in Block A-18 of the Joint Development Area is being funded by ARCO.
An engineering, procurement and construction (EPC) contract is scheduled to be awarded in the first quarter of 2000, providing for development of the first phase of gas production. Carigali-Triton Operating Company (CTOC) has begun field development work and has awarded several contracts for long lead-time equipment, including CO2 removal, structural steel, refrigeration, power generation and gas compression. First gas production is anticipated second quarter 2002.

Triton announced its Ceiba discovery on October 6, 1999, following drilling and testing of the Ceiba-1 discovery well. The Ceiba-2 appraisal well, announced November 22, 1999, confirmed the field as a commercial oil discovery. Ceiba is located in Block G which combined with Block F encompass an area of approximately 1.3 mm acres, located in the Rio Muni Basin off the continental coast of Equatorial Guinea, approximately 150 miles south of the country's capital, Malabo. Triton is the operator ofBlocks F and G. The other partner in the blocks is South Africa-based Energy Africa Ltd.

Triton Energy Limited is a Dallas-based international oil and gas exploration and production company with major oil and gas assets in Latin America, Southeast Asia and West Africa.