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CGX Energy Inc V.OYL

Alternate Symbol(s):  CGXEF

CGX Energy Inc. is a Canada-based oil and gas exploration company. It is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana. The Company, through one of its subsidiaries, holds an interest in a Petroleum Prospecting Licence (PPL) and related Petroleum Agreement (PA) on the Corentyne block in the Guyana Basin, offshore Guyana. The Company, through its subsidiary Grand Canal Industrial Estates, is constructing the Berbice Deep Water Port. This facility, located on the eastern bank of the Berbice River, adjacent to and north of Crab Island in Region 6, Guyana, is being constructed on 30 acres with 400 m of river frontage. Its subsidiaries include CGX Resources Inc., GCIE Holdings Limited and CGX Energy Management Corp. It is the operator of the Corentyne block and holds a 27.48% working interest. Its Wei-1 exploration well is located west of the Kawa-1 discovery in the northern region of the Corentyne block.


TSXV:OYL - Post by User

Bullboard Posts
Post by mohasaon Jan 27, 2011 9:56pm
1871 Views
Post# 18038320

Question on Murphy's Caracara Well (Suriname)

Question on Murphy's Caracara Well (Suriname)

Here's the QandA regarding the Suriname well - Transcript from Seeking Alpha below.
Operator

And your next question comes from Blake Fernandez of Howard Weil.

Blake Fernandez - Howard Weil

Couple of question for you, David. Can you remind me the Suriname is that a three well commitment? I'm trying to get a feel for, if second well is indeed dry, what the plans are for there?

David Wood

Let me kind of give you a little bit of my thoughts on where we are with Suriname. We did drill the first well at Caracara. We found good quality reservoir, actually better than we had predicted. But it did not contain any oil. The rig is currently waiting on whether to move to Aracari. And we hope that that's going to take place imminently.

The results of Caracara kind of underscore some other things we though going in and helped address one main risk, which was the present of reservoir. So we believe we got reservoir in the system. The several 100 meters, actually it's about 600 meters of shale that are overlying that same package had oil shelves.

And we believe that that is encouraging for the play, because we wanted confirmation that we were in the kitchen area. And we believe that that suggests that we are. What is also interesting is that the next prospect is drilling a seismic anomaly that is down dip from where these oil shelves were seen in this well.

Now, the second risk element is up dip seal, the encouragement news here is that there is oil shelves within that sealed section for this next prospect. Now, that's what we've seen and that's what we understand. We still got to drill the well, we still got to make sure that it itself has reservoir. But as oil exploration around the world, occasionally you are lucky enough to make a discovery with the first well.

And sometimes it takes small wells to understand what you're doing, but we have done as a company both. In this case here it does not discourage us that Caracara is dry, having said that, I love making discoveries with the first well. But we are seeing some of the things, the way we thought they should be and when you're in the exploration business that is always good.

We will drill two wells. We will let the rig go to other people, and the rig will comeback to us. And we have a number of prospects, some of different play types than what we've tested, and we'll be looking to drill those. So that's kind of the plan that we're on that.

Blake Fernandez - Howard Weil

Thank you for the comprehensive answer there. Also you mentioned the Congo pre-salt, is there a specific timeframe on when we may see that spud?

https://seekingalpha.com/article/249247-murphy-oil-ceo-discusses-q4-2010-results-earnings-call-transcript?part=qanda

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