RE:OpinionsSeveral Comments:
1. As the following article states - Maka Central has done much to remove concerns the Eastern part of the Guyana/Suriname basin contains only gas and/or condensate. Link follows:
https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/010720-apache-total-make-significant-oil-gas-find-offshore-suriname Furthermore, we have heard from Hess/Exxon in 2018 that Haimara may potentially hold an oil lobe up-dip from where the inital well was drilled. In addition, we have heard from Hess/Exxon there may be a deeper prospect below the original Haimara discovery that might contain light sweet oil (as opposed to gas and / or condensate).
Believe Maka Central results has now de-risked the Haimara area to potentially hold signficiant commercial deposits of high quality oil. Either in a deeper zone or up-dip of the original Haimara well.
2. Apache next well exploration location being closer to shore a very positive read-through there are large prospects in shallower mid-water depositional setting. In addition, we have heard from Apache earlier today the Sapakara West well will also test an upper cretaceous target.
It would seem the key takeaway here is interest (heightened focus) by E&Ps to focus on the deeper upper cretaceous (i.e. light sweet oil).
3. Preliminary indications from Apache - while pursuing the over pressured turonian revealed additional pay in a lower Santonian interval. Takeaway here - very positive sign there seems to be additional light, sweet oil prospectivity in the over pressured lower Santonian and Turonian - yet to be tested.
My opinion: - CGX/Frontera will likely target upper cretaceous stratigraphic targets in 2020 to pursue light, sweet oil. As opposed to shallower heavy oil targets (upper tertiery).
- Northern Corentyne Area will be a key focus area - given outstanding Maka Central-1 results. Prospective JV partners are banging down the door...
Given the above assumptions / opinions - Frontera/CGX will need to at least US $150M to drill in the Northern Corentyne Area (gross well cost). Believe Frontera will look to harvest their investment in CGX by bringing in a JV partner for a signficiant carry through exploration, appraisal and development costs. As part of this strategy, Frontera may sell CGX equity interest altogether to a bigger player (for a premium) and keep its minority 33% interest.
A potential sell out for Corentyne alone should fetch more than $500M... food for thought...