CGX Energy Inc V.OYL

government has aproved Wei1 well as appraisal/Exploration

[bazilfawlty]

https://stockhouse.com/news/press-releases/2022/11/28/cgx-and-frontera-provide-update-on-wei-1-well-preparations

“The Joint Venture is pleased to announce that it has spud the Wei-1 well, offshore Guyana and that the Government of Guyana has approved the Joint Venture’s appraisal program. Wei-1 will appraise both the Kawa-1 discovery as well as explore additional opportunities within the Corentyne Block. The Wei-1 well is on-trend, and well positioned for success with both Kawa-1 and recent peer discoveries immediately adjacent to the northern section of the Corentyne block,” commented Executive Co-Chairman Suresh Narine.

[mrbb]

as a new shareholder of cgx dipping its toes for this Wei lottery, i don't know the history of this play so i have a few questions that may also clear up these some discussion here 1. is the Wei-1 well designed similar to Kawa-1 design?  If a well completed with prod. casing, why can't it be turn into a producing/injection well? Well status can be change with approval from ghana

[Ermosp]

#2 is the big question. They should have that data from simple wireline assuming they can run it. my biggest concern is that they are having trouble operating equipment at TD again. They have failed the last two times, once on kawa and once already on Wei , hence the expensive sidetrack

[Kelvin]

Ermosp, I'm hoping that the recent share price action is reflecting successful gathering of info. At over one million dollars per day spread sheet costs many people must be anxious about hole instabilty problems.

[Kelvin]

Mrbb, You can go to slide #14 on the CGX Corentyne Presentation August 2022 posted on the internet. There you'll see the casing designs for both Kawa and Wei-1. Kawa drilled into the Coniacian, took a kick and if memory serves they couldn't do much evaluation on it because of some mud problems. Kevin Lacey talks about it in the CGX May 2022 webinar also posted on the internet. You may

[mrbb]

i'm just surprise to see CGX can releases info on net pay for its secondary zone but not the primary zone.  Open hole logs are done in 1 run. net pay can be determine from the logs data easily just as for the 71 feet for the upper zone.  Unless CGX choose to release the net pay and flow test data (and other pertinent reservoir data) of its primary zone at a later date simultaneously

[Kelvin]

Lol mrbb, Well you know more about logging than I do. So then they should already know net pay since days ago when they drilled the Santonian with LWD in the BHA. I didn't realize that. Yeah, well who knows why they didn't release the info during last NR. 

[Kelvin]

Ok my mistake. I shot my mouth off before my brains were loaded. I don't want to be accused of being a shorty. Net pay is a calculation. That's why they can't report it immediately after logging. It is a required input into the hydrocarbon pore feet calculation (Fhcp) which is then used to calculate OOIP (original oil in place) for a reservoir.  It depends on the "net to

[waitingstill]

I believe they reported on the secondary targets because they had the wireline completed and the pay was confirmed. I do not believe they had completed wireline on the primary target so it was not reported so they would not have to make any corrections or put themselves at risk of misleading investors. I believe they will report the primary target pay once wireline complete. If so, I expect a NR

[mrbb]

Well logging has come a long way from reading black and white squiggly lines. Today well logging interpretation is done super quick (IE real time) as data collected are being processed by onboard fast computer. On an expensive well like Wei-1, nothing leave to chance or by pencil and ruler interpretation, especially stacked limestone/shale of Santonian where digital processing can count every mm

[Ermosp]

They logged the secondary before they drilled the primary, because they failed their initial run at primary and had sidetrack to get the new primary. That said, they definitely should know the pay interval if not the fluids and cores. It is a mystery why they chose not to reveal it. 

[mrbb]

thanks for the clarificaiton. I didn't know they had to sidetrack to get to the primary.  With LWD, driller would have some idea what gross pay they have drilled through though.  May 5, 2023 “Operations were interrupted when a wire line fluid sampling tool became stuck in the well and was not recovered. An open-hole sidetrack will begin shortly from below the last casing point

[waitingstill]

I am sure you are right that they would have had a good idea of pay in primary when NR vame out but my assumption is that they would want to be super cautious putting out numbers not confirmed by wireline. Hence the delay. But we should know soon i would hope. Maybe this week!

[mrbb]

As a late investor, i have another question on this Corentyne play and recent TD of Wei-1 Have CGX and FEC secure all the petroleum rights for the Corentyne block necessary for a full commercial development?  If not, i can't see why would CGX and FEC want to release too much detail info regarding WEI-1, it could drive up bid prices on remaining oil and gas concession.  My