Georgetown: CGX Energy Inc. has announced that its drilling campaign has produced greater results. The company, in a press statement on Monday, announced that the Kawa-1 well encountered approximately 177 feet (54 metres) of hydrocarbon-bearing reservoirs within Maastrichtian, Campanian and Santonian horizons based on initial evaluation of Logging While Drilling (LWD) data.
Those intervals are similar in age and could be correlated using regional seismic data to recent successes in Block 58 in Suriname and the lucrative Stabroek Block offshore Guyana.
Speaking about the discovery, Gabriel de Alba, Chairman of CGX’s main shareholder, Frontera, said: “Initial results from the Kawa-1 well are positive and reinforce CGX and Frontera’s belief in the potentially transformational opportunity our investments and interests in Guyana present for our companies and the country.
“Kawa-1 results add to the growing success story unfolding in offshore Guyana as the country emerges as a global oil and gas exploration hotspot. On behalf of the joint venture, I’d like to thank the Government of Guyana for its long-standing support as we worked together to deliver this successful outcome.”
In addition to this significant discovery, the company also encountered hydrocarbon-bearing sands in deeper strata, which would be further analysed and could even become a target for future appraisal opportunities.
The Kawa-1 well was drilled to a depth of 21,578 feet (6,578 metres) and targeted the easternmost Campanian and Santonian channel/lobe complex on the northern section of the Corentyne block.
According to CGX, the Kawa-1 results support the joint venture’s geological and geophysical models and have helped de-risk equivalent targets in other parts of the Corentyne licence area.
The “end-of-well” forecast is currently projected to be the end of February 2022. Information on final well cost estimates and additional results will be announced upon completion of end-of-well activities.
In light of its discoveries, the company is assessing several strategic opportunities to obtain additional financing to meet the costs of its drilling programme.
The company, in November 2021, managed to accumulate US$59 million to further develop and expand its operations both offshore and onshore Guyana.
At that time, the company had said that it intended to use the funds raised for the exploration and development of the Corentyne and Demerara Blocks offshore Guyana, and the Berbice Blocks onshore Guyana, and for the development of the Berbice Deep-Water Port in Guyana.
Executive Co-Chairman of CGX’s Board of Directors, Professor Suresh Narine, was quoted as saying: “Results from the Kawa-1 well represent a positive milestone in the CGX journey as a pioneer oil and gas explorer in the Guyana Basin.
Together with our partner Frontera, CGX looks forward to continuing our socially and environmentally conscious approach to development of Guyana’s oil and gas industry and port infrastructure. We are proud of our long partnership with the Government and People of Guyana and of our reputation as Guyana’s Indigenous Oil Company.”
His comments were followed by remarks from Chief Executive Office of Frontera, Orlando Cabrales, who said: “We are very pleased to have successfully drilled the Kawa-1 well with our partner CGX. I commend the significant efforts of all the talented employees and contractors involved and their dedication to helping this partnership achieve this important milestone. We now have the ability to focus our efforts on potentially transformational opportunities and to continue our positive relationship with the Government and People of Guyana.”
Building on its recent find at the Kawa-1 exploration well, CGX anticipates spudding its second commitment well, called Wei-1, in the north-western part of the Corentyne Block, in the second half of 2022.
The company has exercised its option to use the Maersk Discoverer semi-submersible mobile drilling rig for the Wei-1 well.
“This is an important step from a health and safety, efficiency, and operational perspective and will maintain both continuity in the exploration programme during a period of high demand in the region and consistency in working with a team familiar with the rig,” CGX related.
The Wei-1 exploration well will target Campanian and Santonian aged stacked channels in the western fan complex in the northern section of the Corentyne block.
The Wei-1 well is named after one of the tallest peaks in the Pakaraima mountain range, which has commanding visibility over the surrounding terrain. Wei Tepu was historically used as a sentinel post by the Patamona people to guard against attacks.
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