RE:Second well of the Discoverer ALSO on Corentyne... I can see merit to CGX drilling back to back exploration wells on the Northern Corentyne Area. However, I would suspect the well would be drilled to test the second major fan complex situated north-west of Kawa.
As mentioned by others, the second exploration well on Corentyne would be in lieu of drilling on Demerara. They would need to seek agreement from the government - which CGX has done many times before.
As a shareholder of CGX who wants to see money spent on drilling the best (lowest risk) prospects and advancement towards developing the resource - this makes sense. I am sure the government is also aligned on wanting the same.
If there is a second well on Corentyne immediately after Kawa, I don't believe it will be an appraisal. An appraisal would require a flow test and specialty long lead items need to be procured in advance of drilling (involving other service companies). The rig also needs to be set up for this operation - you can't just perform a flow test on the fly.
The other area where I see merit is CGX wanting to get the majority of their mean 2.5B barrels on Northern Corentyne locked down as a "discovery area" secured under a 20 year (plus 10 year option) production license.
Of course, the more we can de-risk on our own - we enhance to farm out on material better terms / price.
Demarara is higher risk and little exploration has taken place in the area relative to the "golden lane" where multiple world class discoveries have been made only miles for the Kawa well location.
However, I am intrigued that we can drill one of the largest fan complexes in the basin (according to 3D seismic) at a depth of ~12kft. Probably looking at a well that can be drilled in ~30 days.
All very exciting and headed in the right direction.