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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

Post by oldcompanymanon Nov 03, 2021 11:26pm
401 Views
Post# 34085163

Time/depth relation not normal

Time/depth relation not normalFolks,

I checked the operational update on Kawa-1, it doesn't say anything relevant tbh.

The only piece of information they disclosed is a bit intriguing, "close to 78% of the footage drilled on the 1/11"; whereas they were at 74% on the 22/10. It makes for +/-250m of progress over a week, not very normal, especially given that they had stated "drilling ahead now" on the presentation of the 22/10.

I will not go into any non-technical hypotheses for this slow progress.

On the purely technical side, a few things may have happened that can have justifiably and understandably caused some NPT; I don't think the details are important for the audience (just a bit trip or MWD failure will not set them back for such a long period).

Any guess with such little information will be unhealthy but if I had one bullet, I would play it on wellbore breathing and stability kind of issues. The neigbors had the same, it ain't the end of the world. It would not surprise me if they end up running one of the contingency strings (the 11-34") they had planned for that kind of situations. They will go through that eventually, let's be patient.

CGX drilling team, if any of you are reading here: as I had written on a previous post, beware of the ECDs if you run that 11-3/4" please. And in case my guess regarding wellbore breathing is correct, maybe try stresscaging to strengthen the wellbore, if you already anticipated that with the mud company and with a proper geomechanical model. Apologies for sticking my nose into your well but again, I have some skin in the game here, let's keep making some hole, please.

GLTA,
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