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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

Comment by oldcompanymanon Aug 02, 2021 5:02pm
267 Views
Post# 33640463

RE:RE:RE:Q2-2021 - HESS EARNINGS CALL

RE:RE:RE:Q2-2021 - HESS EARNINGS CALL Thanks for this detailed answer. The fact that the well is not HPHT makes a huge difference in terms of operational outcome uncertainties and in terms of well timing, based on the information you give, my professional judgment is that 80-85 days is more than sufficient time to drill this well, including relevant contingency liners and such.

Another interesting point is that, as I had highlighted in one of my previous posts, somewhere between day 45 and day 60 there will be sufficient, substantiated information based on MWD and logs, to go and see the bank if they want to drill a sidetrack etc; the picture will be totally different by then so 80 days is really a lot of time. This is a real, serious relief.

My main concern would have been, if the well was HPHT, not so much about rig equipment and upgrades etc, but timing (and therefore budget). I drilled two HPHT exploration wells with a rig of much lower spec than the Discoverer and we stayed still within the requirements of a demanding North Sea regulator, so the Discoverer would be OK to drill also an HPHT exploration well (albeit, nowadays MPD adds a lot of operational safety and efficiency in HPHT and the Discoverer is not equipped with it but this sole point in itself would not be a showstopper). On the other hand, timingwise an HPHT well in these depths would be a bit challenging within 85 days; nothing impossible, but challenging nevertheless.

Anyway, in short we are in good shape, really in good shape, for the coming weeks. as was stated on one of the posts, filter out the noise, hold fast and wait for the well results.
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