RE:RE:Interesting quote in today's PRHi Sporty.
A couple notes to your post, as I you make some interesting points.
Firstly, I think so many people are confusing the terms exploration and appraisal, its clear most have next to no experience with oil and gas geology (which ironically also includes many of the senior leaders in Frontera and CGX).
https://cgxenergy.com/wp-content/uploads/2022/08/Corentyne-Presentation-2022-28Aug2022.pdf
- Go look at slides 9 to 12.
- Although they might be targetting similar aged deposits, the sand bodies (and hence reservoir sands) are not connected. Not even close. Wei-1 and Kawa-1 are ~14km apart.
- Wei-1 is a exploration well. They are drilling a brand new reservoir target.
- Kawa-1 still needs at least 1-2 additional wells to determine its edge boundries/reserovir properties and thus volumeteic potential. The fact Exxon and Apache JV have drilled numerous appraisal wells on the same oil field discovery should be an obvious clue to many that Kawa field discovery will not escape such scrutiny as well. Hence my point about Wei-1 being a seperate entity exploration well.
"They talked about the thesis that Kawa zones possibly communicating with Wei zones"
- Again, slides 9 to 12 should show very clearly this is not even close to being possible. Especially with it being channel compexes.
"Fourth, clearly FEC is risking a whole lot on this project."
- No disagreement.
- De Alba, according to everyone, was supposed to be this magical dealmaker who was could weave high magic and get external companies to buy into the thesis that is northern Corentyne without actual well results. Instead, he screwed around these past couple years with staff leaving/poor PR around Kawa-1/etc and now has everything riding on Wei-1. The smart folks at other companies have called his bluff and he is now putting >$500MM USD (Cgx shares, well costs, seismic, etc) all on the result of one well. Craziness.