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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 > Cgx News
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Post by sonujaggi on Mar 04, 2022 8:36am

Cgx News

CGX Energy Provides Operational Update

V.OYL 

Toronto, Ontario--(Newsfile Corp. - March 4, 2022) - CGX Energy Inc. (TSXV: OYL) ("CGX" or the "Company") today provided additional details about the findings from the independent laboratory that analyzed the Kawa-1 well samples of cuttings from the four pay intervals in the Santonian mentioned in their March 2, 2022 press release. Kawa-1 was a first stage exploration well intended to identify the presence of hydrocarbons, which occurred. The well was then decommissioned by way of safely plugging and abandoning it, a standard practice and planned event. The Kawa-1 well was never intended to be kept active following completion of the successful drilling campaign. 

The summary of the cuttings analysis, where the Company stated in its March 2, 2022 press release that "preliminary results from the Santonian interval indicate the presence of liquid hydrocarbons in the reservoir," was based on the following findings from the independent laboratory:

  • Cuttings samples from twelve reservoir zones in the Kawa-1 well are being analyzed with a variety of geochemical methods to evaluate in situ hydrocarbons. Preliminary data from four pay intervals in the Santonian show consistent fingerprints which provide confidence in the interpretation and mitigate mud contaminants by overcoming the presence of Synthetic Oil Based Mud (SOBM) in the cuttings. A technique called Low Temperature Hydrous Pyrolysis (LTHP) was utilized to analyze the cuttings to preserve volatile hydrocarbons.
  • High Resolution Gas Chromatography (HRGC) analysis of the LTHP mobilized hydrocarbons demonstrate the reproducible presence of light hydrocarbons (C4-C12). Distinctive molecular ratios in these light hydrocarbons indicate that these Santonian reservoirs likely contain a light oil, consistent with fluorescence analysis of cuttings during drilling. These results are supported by analysis of solvent-extracted samples from the cuttings, which contain biomarkers that show characteristic patterns consistent with a Cretaceous Santonian source. 
  • Measured ratios of Dibenzothiophene/Phenanthrene aromatics from the samples are low (<0.15), in line with low sulfur content and a marine shale source. Further geochemical investigation of samples taken from the Santonian, Campanian and Maastrichtian intervals continue and will be communicated when fully analyzed. 

About CGX 

CGX is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep water port in the Berbice, Guyana.

NEITHER THE TORONTO STOCK EXCHANGE, TSX VENTURE EXCHANGE NOR THEIR REGULATION SERVICES PROVIDERS (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TORONTO STOCK EXCHANGE AND TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Cautionary and Forward-Looking Statements:

This news release contains forward-looking statements within the meaning of Canadian securities laws. All statements, other than statements of historical fact, that address activities, events or developments that CGX believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding exploration and development plans and objectives with regards to the Kawa-1 or Wei-1 wells) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of CGX based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the need to obtain any required regulatory approval; the ability of the joint venture of Frontera Energy Corporation and CGX to successfully explore and develop offshore blocks, and to fund exploration and development and the impact thereof of unforeseen costs and expenses; changes in equity and debt markets; perceptions of the prospects and the prospects of the oil and gas industry in the countries where the Company operates or has investments; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated May 5, 2021 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, CGX disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although CGX believes that the assumptions inherent in the cautionary and forward-looking statements applicable to it are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

For further information, please contact: Todd Durkee, Vice President of Development at (832) 300-3200.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/115670

Tags:
Comment by soulfire on Mar 04, 2022 8:50am
Thanks for posting SJ
Comment by tiger77 on Mar 04, 2022 8:58am
Oil_Run, As the most respected poster on this board by my own standard can you please provide your thoughts on this further PR that simply provided that little bit more info we needed to have avoided yesterday's catastrophe? Any insight would be appreciated . Tiger77
Comment by OIL_RUN on Mar 04, 2022 9:11am
The preliminary data they just shared on the Santonian suggest results are in line and consistent with what Apache-Total found at Maka Central (our closest analogue). More specifically, the Santonian intervals comprise high quality / low sulphur oil bearing reservoirs. There were four pay intervals sections in the Santonian - all had consistent / similar fingerprints. Very encouraging given ...more  
Comment by Gtboy on Mar 04, 2022 9:22am
Oil-Run Can you please explain to an amateur like me why was the Well plugged and abandoned even after finding light oil bearing reservoirs? what is the next step if they do further testing and confirm their analysis? GT
Comment by ShooterMcG on Mar 04, 2022 9:31am
I said this a few months ago and was shot down pretty quick. It's standard practice for offshore exploration wells. This well was placed optimally to target the 3 zones, not for development. Once the well is complete, it needs to be plugged and abandoned to stop any hydrocarbons reaching the surface.
Comment by OIL_RUN on Mar 04, 2022 9:31am
From the very beginning - Kawa was designed to be plugged and abandoned. Kawa was never intended to be preserved nor would be used for a DST (flow test). I cannot recall a single instance where a frontier exploration deepwater well was flow tested immediately after discovery. I don't know where that came from on this board - but, it's completely inaccurate. DSTs are usually performed ...more  
Comment by Ermosp on Mar 04, 2022 11:36am
Reads good to amateurs. Question is, is this sufficient data for JV partners?
Comment by OIL_RUN on Mar 04, 2022 12:01pm
The sophisticated future JV partner(s) will be squaring up not only Kawa-1 well data - but, also the direct analogues (Maka Central, Kwaskwasi, Pluma, Lau Lau, Haimara, etc).  The data points released yesterday and today confirms (through third party data / analysis) the santonian (all 4 intervals) at Kawa contain high quality / low sulfur oil. Hence, we are on trend with Maka ...more  
Comment by Ebenizer3 on Mar 04, 2022 5:03pm
not sure if it's cgx/fec hellbent on playing chicken(going at it alone) or the potential JV partners sitting back and watching the trainwreck and getting ready to step in and pick up the pieces. And if they don't get a JV before Wei-1 is spudded the sp will be back below the 0.80 cent mark. I don't think some oil-based drill cuttings will give u the results everyone is looking for. If ...more  
Comment by Sparky5968 on Mar 04, 2022 6:13pm
"Cuttings samples from twelve reservoir zones in the Kawa-1 well are being analyzed with a variety of geochemical methods to evaluate in situ hydrocarbons. Preliminary data from four pay intervals in the Santonian show consistent fingerprints which provide confidence in the interpretation and mitigate mud contaminants by overcoming the presence of Synthetic Oil Based Mud (SOBM) in the ...more  
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