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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 shleevoon Mar 31, 2011 5:29pm
714 Views
Post# 18369822

Zaedyus

ZaedyusGot this off a Tullow Board:

Zaedyus is probably TLW's most interesting well for ages. This really is frontier stuff as there have only been 2 wells drilled in this basin before. It's a sub-basin of the Guyana-Suriname Basin, separated from the main basin by a large basement high. So wells drilled off Suriname and Guyana don't really count, as they are the other side of that high. Anyway, Elf-Acquitane drilled the Sinnamary-1 well in 1975, which TD'd granite basement at 2014m, drilled in a water depth of 48m. And EssoRep drilled FG2-1 in 1978, which TD'd in Basalt Basement at 3941m, drilled in a water depth of 823m. Neither well intersected hydrocarbons. I think Zaedyus will be drilled to about 6400m in a water depth of 1600m (not 1000m mentioned in article above) and take 2-3 months to drill. The 2nd term of the PSC expires on June 1st, 2011, with an option of a third term of 5 years after. Apparently FG used to be conjugate with Sierra Leone/Liberia and the whole set up (source rock/migration pathway/fans draped over a structural high) of Zaedyus looks remarkably similar to Jubilee in Ghana.

Digressing a bit, Murphy Oil have recently drilled a duster at Caracara off Suriname. That was kind of disappointing, to me, as Murphy had characterized Caracara as a "Jubilee look alike". Somebody asked AngusMcGoss, at the Jan Trading Update, whether this failure impacted TLW's perception of regional prospectivity, to which he replied "not really, we weren't surprised by that, it's not what we are chasing" [words to that effect].

There's a good explanation of the Caracara failure in the UBS Report (thanks, uncommon13, post 4136 above), which goes into some detail and is worth a read. But basically Caracara was an Albian, or Mid-cretaceous target in an older, deeper formation, than the upper-cretaceous stuff TLW like and the failure is thought to be due to

Murphy drilled the Caracara well into mid-Cretaceous levels. They saw oil shows in shale sections higher up in the well but drilled into high quality reservoir that had not been charged. An interpretation of this is that the prospect was not in the oil migration pathway, whereas the Jaguar and Eagle Deep prospects are very close to what CGX believes is mature source rock.

This shouldn't be a problem with Zaedyus either, as it's believed to sit right over the source rock.

Bullboard Posts