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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 Kelvinon Nov 16, 2023 5:41am
209 Views
Post# 35738445

RE:RE:RE:Where do we go from here?

RE:RE:RE:Where do we go from here?I agree Dell1. If they have a massive hydrocarbon migration fairway in the Coniacian where hydrocarbons migrate up to shallower formations like the Santonian, Campanian and Maas via faults then those upper zones would see very high abnormal pressures because the much higher pressure from the lower zones would be communicated up to the shallower zones. But we were given no pore pressure info. Also, if there is in fact communication between the lower zones and upper zones then the reserve estimate now includes the hydrocarbons in the lower zones as well.

I'm sure that WCP with his excellent GOM contacts can confirm the plausibility of the above. All it would take is to drill one well down to the Maas and flow test it. An $80 million investment would have to be made. I have no idea of how such a deal with a major could be structured. Maybe some sort of a conditional deal. If the well flows "x" boe per day with estimated recoverable boe's of "y" million barrels then the major gets "z" working interest. Some sort of arrangement like that. Exxon's wells must be putting out at least 80,000 bbl/day. I remember that when BP Macando in the GOM blew out (in 2010 if memory serves) MIT fluids mechanics PhD's studied the video of the well flowing at the sea floor and estimated  a flow rate of over 90,000 bbl/day. These deep water wells really put out.

Additionally I've read that you can lease out lower capacity FPSO's. During one presentation FEC/CGX said that they could convert an existing oil tanker into an FPSO at much lower cost than building a new one. So a stand alone development is quite possible. I have no idea of the number of injection wells required. Plus the subsea tiebacks. How much money is required to reach the point of first oil if their appraisal wells prove to be successful? Probably more than fec has available. So a deal with a major will have to be negociated. How long does that take?
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