- CGX Energy (OYL) is spudding a new well
- The Toronto-based energy company spudded the Wei-1 well on the Corentyne block offshore from Guyana
- The well is a joint venture with the company’s partner Frontera Energy Corp
- The well is expected to take approximately 4-5 months to reach total depth
- The joint venture is now free to consider future wells in the region
- CGX Energy is down 6.11 percent, trading at $1.69 at 1:11 p.m. EST
CGX Energy (OYL) is spudding a new well.
The Toronto-based energy company spudded the Wei-1 well on the Corentyne block offshore from Guyana.
The well is a joint venture with the company’s partner Frontera Energy Corp.
The Government of Guyana has approved an Appraisal Plan for the northern section of the Corentyne Block, which started with the Wei-1 well.
The joint venture is now free to consider future wells.
Future drilling is contingent on positive results at Wei-1, and the two companies have no further drilling obligations beyond the Wei-1 well.
The Wei-1 well is located approximately 14 kilometres northwest of the joint venture’s previous Kawa-1 light oil and condensate discovery and will be drilled in a water depth of approximately 583 metres, to an anticipated total depth of 6,248 metres.
The Wei-1 well will target Maastrichtian, Campanian and Santonian-aged stacked sand channels that are part of a channel/fan complex in the northern section of the Corentyne block. The well is expected to take approximately 4-5 months to reach total depth.
“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. The Joint Venture is grateful for the Government of Guyana’s ongoing support as we worked towards spudding Wei-1 in accordance with the previously agreed terms, and we look forward to potentially delivering another discovery for our shareholders and the Guyanese people,” said Co-Chairman of CGX Energy Board of Directors, Suresh Narine.
CGX Energy is down 6.11 percent, trading at $1.69 at 1:11 p.m. EST.