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Bullboard - Stock Discussion Forum 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... see more

TSXV:OYL - Post Discussion

CGX Energy Inc > No commercial oil at Jabillo-1, Sapote is next target
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Post by Devanand1 on Jul 05, 2021 7:06am

No commercial oil at Jabillo-1, Sapote is next target

Westmount Energy Ltd., a company that holds shares in two of the firms with stakes in the Kaieteur Block offshore Guyana said on Monday it has been informed by JHI Associates Inc. that the Jabillo-1 well on the Canje block reached target depth without encountering commercial hydrocarbons.

Westmount said Project operator ExxonMobil will now switch attention to the Sapote-1 well, more than 100 kilometres away, to test the largest prospect to date on the Canje block. This would be the third in a 3-well campaign planned on the block this year. A non-commercial strike was already made at the first prospect to be drilled on the block – Bulletwood.

Sapote-1 is located closer to Exxon’s Upper Cretaceous discoveries in the Stabroek block. It is described as an independent multi-layer prospect, which will evaluate several Upper Cretaceous targets.

Westmount it is anticipated that Sapote-1 will be spudded in mid-August using the Stena DrillMAX drillship, with results due to follow in October.

Westmount retains an indirect interest in the Canje block via its 7.2% shareholding in JHI Associates, which holds a 17.5% stake in the block – alongside Exxon with 35%, Total with 35% and Mid-Atlantic Oil & Gas Inc with 12.5%.

The Jabillo-1 well was drilled down to 6,475 meters. It was drilled in 2,903 meters of water by the Stena Carron drillship. It will be plugged and abandoned.

Comment by westcanpride on Jul 05, 2021 9:41am
Though unfortunate, its a painful reminder that oil exploration is not easy and guaranteed. Leading into their original Bulletwood-1 well in deeper water, Exxon had called it a "Liza look alike". As we know (well I think most do), it was a dry (or non-economic well). The next two wells, Tanager and now the Jabillo, were also dry wells.  Good thing for ExxonMobil in Stabroek is that ...more  
Comment by Devanand1 on Jul 05, 2021 9:48am
Totally agreed. It is a painful reminder.. This is definitely risky bisiness.
Comment by soulfire on Jul 05, 2021 10:03am
I view this a little differently. While it's unfortunate that they did not hit, it makes our blocks a lot more attractive for anyone who may want to get into this basin. So that $1B has to spend can certainly be useful in a proven area. GLTA
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