Latest oil find a ‘springboard’ for massive development in B THE latest oil find by CGX Energy Inc., offshore Guyana, is expected to serve as a springboard for development and massive investments in Region Six (East Berbice-Corentyne), according to Minister of Natural Resources, Vickram Bharrat.
It was reported that less than two months after encountering hydrocarbons at the Kawa-1 well in the Corentyne Block, offshore Guyana, CGX Energy Inc. announced that its drilling campaign has produced greater results.
The company, in a press statement on Monday, announced that the Kawa-1 well encountered approximately 177 feet (54 metres) of hydrocarbon-bearing reservoirs within Maastrichtian, Campanian and Santonian horizons based on initial evaluation of Logging While Drilling (LWD) data.
Those intervals are similar in age and could be correlated using regional seismic data to recent successes in Block 58 in Suriname and the lucrative Stabroek Block offshore Guyana. The Kawa-1 well was drilled to a depth of 21,578 feet (6,578 metres) and targeted the easternmost Campanian and Santonian channel/lobe complex on the northern section of the Corentyne block.
Map showing Guyana’s blocks (Photo courtesy of CNW Group/Frontera Energy Corporation) As reported by the Department of Public Information (DPI), Minister Bharrat said: “This oil find will be a breath of fresh air for that county, and I am sure that we will see a number of investments going east as we move forward in the oil and gas sector.”
In his view, this is even more significant because the former A Partnership for National Unity and Alliance For Change (APNU+AFC) government had “suffocated” Region Six, especially with the closure of the Skeldon and Rose Hall sugar estates. In addition to this closure, the region was reportedly starved of new investments.
Minister Bharrat said that the government thinks positively and welcomes the announcement by CGX Energy and its partner in the Kawa-1 well in the Corentyne Block. Minister Bharrat also shared his excitement over the discovery which was made outside of the globally prolific Stabroek Block.
“We have always been supportive of exploration activities being done by all of the operators across the blocks including the Corentyne Block. We knew that the Corentyne Block has significant potential because of its closeness to the discoveries in Block 58 in Suriname,” the minister said.
He said the announcement by the company indicates that there might be large reserves of hydrocarbons present in the Corentyne Block.
“As government, we have to await on the logging and the further appraisal of the well information and other wells so that we can try to quantify the hydrocarbons present in the Corentyne Block. But as it is right now, we are very delighted on the information and the news,” Minister Bharrat said.
On the deep-water port that is being constructed by CGX Energy, Minister Bharrat called on CGX Energy to ensure that the completion of the facility is done in a timely manner. This timeliness, he pointed out, will create opportunities and jobs for Berbicians.
In light of its discoveries and considering its additional plans, the company is assessing several strategic opportunities to obtain additional financing to meet the costs of its drilling programme.
The company, in November 2021, managed to accumulate US$59 million to further develop and expand its operations both offshore and onshore Guyana.
At that time, the company had said that it intended to use the funds raised for the exploration and development of the Corentyne and Demerara Blocks offshore Guyana, and the Berbice Blocks onshore Guyana, and for the development of the Berbice Deep-Water Port in Guyana.
POSITIVE MILESTONE
Executive Co-Chairman of CGX’s Board of Directors, Professor Suresh Narine, was quoted as saying: “Results from the Kawa-1 well represent a positive milestone in the CGX journey as a pioneer oil and gas explorer in the Guyana Basin.
Together with our partner Frontera, CGX looks forward to continuing our socially and environmentally conscious approach to development of Guyana’s oil and gas industry and port infrastructure. We are proud of our long partnership with the Government and People of Guyana and of our reputation as Guyana’s Indigenous Oil Company.”
His comments were followed by remarks from Chief Executive Office of Frontera, Orlando Cabrales, who said: “We are very pleased to have successfully drilled the Kawa-1 well with our partner CGX. I commend the significant efforts of all the talented employees and contractors involved and their dedication to helping this partnership achieve this important milestone. We now have the ability to focus our efforts on potentially transformational opportunities and to continue our positive relationship with the Government and People of Guyana.”
Building on its recent find at the Kawa-1 exploration well, CGX anticipates spudding its second commitment well, called Wei-1, in the north-western part of the Corentyne Block, in the second half of 2022.
The company has exercised its option to use the Maersk Discoverer semi-submersible mobile drilling rig for the Wei-1 well.
“This is an important step from a health and safety, efficiency, and operational perspective and will maintain both continuity in the exploration programme during a period of high demand in the region and consistency in working with a team familiar with the rig,” CGX related.
The Wei-1 exploration well will target Campanian and Santonian aged stacked channels in the western fan complex in the northern section of the Corentyne block.
https://guyanachronicle.com/2022/02/03/latest-oil-find-a-springboard-for-massive-development-in-berbice/