CGX revises oil discovery in Corentyne Block upwards

…to focus on drilling in Corentyne

CGX Energy Incorporated and its Joint Venture partner Frontera Energy Corporation, who had previously announced an oil find of 177 feet of oil-bearing reserves in the Kawa-1 well, have now revised that figure upwards following additional tests.

This was communicated on Monday. According to the Joint Venture partners, the new figure has been confirmed to be 200 feet of oil-bearing reserves in the well. The revision came about after they would have analysed logs and samples, to provide an update on the find.
“As a result of the initial positive results at the Kawa-1 exploration well, the Joint Venture will focus on the significant exploration opportunities in the Corentyne Block and will not engage in drilling activities on the Demerara Block in 2022, as previously outlined by press release on February 16, 2021.”
“Kawa-1 early-stage Wireline Logging results confirm the Logging While Drilling (LWD) indications previously disclosed on January 31, 2022 with a total of 200 feet of net pay encountered at multiple depths. Further analyses of logs and samples are ongoing. The Joint Venture will provide an update when these activities are complete,” the joint venturers had also said.
Meanwhile, the partners had also said that they are currently engaged in discussions with the Government of Guyana regarding the Demerara Block and will provide an update on those discussions as soon as a conclusion has been reached.
Last month, the partners had announced an oil find in the Kawa-1 well in the Corentyne Block, bringing an end to an over two decades wait for the company’s maiden discovery of oil in commercial quantities.
According to them at the time, the Kawa-1 well was drilled to a depth of 21,578 feet and encountered some 177 feet of oil-bearing reserves in the well during an initial evaluation. There are further hydrocarbon-bearing sands that were encountered, which the companies said will be analysed and possibly form the targets of future exploration.
“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,” the Joint Venture partners had also said.
The company had further revealed that in the wake of its success at the Kawa-1 well, a second well called the Wei-1 will be spud in the north-western part of the Corentyne Block in the second half of the year. At the time, Frontera Chairman and CGX Co-Chairman Gabriel De Alba had spoken highly of the potential the oil find brings for the company.
“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,” he said.
“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,” De Alba also said.
Executive Co-Chairman of CGX, Professor Suresh Narine meanwhile described the oil find as a positive milestone in the company’s journey in the Guyana basin. He also made it clear that CGX eagerly anticipates taking part in the development of Guyana’s oil industry.
“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,” Narine had said.
CGX and Frontera Energy had previously commissioned an independent report which had revealed that they are potentially sitting on 4.9 million Barrels of Oil Equivalent (BOE) in the Demerara and Corentyne, Guyana oil blocks under their control. (G3)