Some good information was released this week by Frontera/CGX. Let's take a step back and look at the bigger picture...
If we take a look at Exxon, everyone understands they are the super majors of super majors. Historically the largest and best of its peers - Shell, BP, Chevron, Total, Eni.
Exxon has upstream assets around the world that are best in class. From the Zakum field offshore The UAE, to Sakhalin Island offshore Russia, to the deepwater pre-salt of Brazil, the deepwater GoM, offshore Mozambique, offshore Papue New Guinea, deepwater West Africa (Nigeria/Angola), the Permian basin, etc.
Do you see my point? Their upstream footprint represents some of the very best / highest quality upstream assets globally.
Its in that context when Exxon makes the statement "there is nothing out there that can compete with Guyana" - it bears meaning and significance. This is not a basin that has a comparative advantage. It's absolute advantaged!
Since 2015, Exxon has unlocked +10 billion barrels of oil offshore Guyana. Exxon's has referenced their nearest analogue (in terms of exploration success) would be Angola - where they discovered more than 4 billion barrels of oil over a 20 period! It's in this context when in 2018, Exxon characterized their exploration campaign offshore Guyana as a "fairy tale". An explorers dream.
It's in this context, in terms of who is making these statements (Exxon), we should pay close attention.
This week we learned it was indeed the giant Berbice Canyon feeder system that set the foundation for Apache discoveries in Block 58 (Maka, Keskesi, Sapakara, and Kwaskwasi) and Exxon's giant discoveries in the Turbot Area along with Haimara and Pluma.
All those massive sandstone reservoirs that are now on Block 58 and around and in the Turbot Area (including Pluma and Haimara - once passed through the Northern Corentyne Area which sits at the mouth of the Bernice Canyon feeder system. Or, otherwise known as turbidites - massive underwater fan system depositing significant amounts of sandstone.
Given the Northern Corentyne Area sits at the mouth of the feeder system we could expect thicker / stacked sandstone reservoirs. Independent analysis pegs a mean average of ~3B net (or 4.5B gross) oil and condensate on Northern Corentyne. The economics associated with developing this resource (stacked reservoirs that are assumed to be comparable to those in Block 58) greatly simplifies topside infrastructure (number of FPSOs required).
Pretty exciting. Very encouraging information released this week. We now await Kawa results. Sit back and relax - this is the fun part! Don't get caught up in the noise.
GLTA