Canadian oil company CGX Energy Incorporated has reported an increase in its chances of finding more oil in the Corentyne Block, as the discovery of light crude at the Kawa-1 well has derisked other prospects in the Block.
According to CGX, who engaged independent third-party laboratories and experts in order to arrive at the findings, the Kawa-1 well was successfully explored and found to have both light oil and gas.
“These findings are consistent with discovery wells reported by other operators surrounding the northern portion of the Corentyne Block and derisks the forthcoming Wei-1 exploration well, expected to be spud in 3Q ’22,” CGX said.
According to CGX, which has partnered with Frontera Energy Corporation, they continue to integrate detailed seismic and lithological analysis and pore pressure studies from the Kawa-1 well into preparations in advance of drilling their second well.
Chairman of Frontera’s Board of Directors and Co-Chairman of CGX’s Board of Directors, Gabriel de Alba spoke of the significance of the find for the partners.
“The Joint Venture is pleased to announce that it has successfully discovered light oil in the Santonian and Coniacian and gas condensate in the Maastrichtian and Campanian at the Kawa-1 exploration well, offshore Guyana,” de Alba said.
“The Kawa-1 discovery adds to the growing success story unfolding offshore Guyana and the integrated Kawa-1 well results further support our belief in the potentially transformational opportunity the Joint Venture has in one of the most exciting basins in the world,” he added.
Meanwhile, CGX made it clear that it would continue to assess several strategic opportunities to obtain additional financing to meet the costs of the drilling programme. It was explained that the Wei-1 well will be just 14 kilometres northwest of the Kawa-1 well.
“The Wei-1 exploration well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne Block, approximately 200 kilometres offshore from Georgetown, Guyana,” CGX said.
“The Wei-1 exploration well will be drilled in water depth of approximately 1912 feet (583 metres) to a targeted total depth of 20,500 ft (6248 metres) and will target Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne Block.”
According to the joint venturers, the findings at the Kawa-1 well mean that the chance of finding oil at Wei-1 has improved from 29 per cent to 56 per cent. They also noted that data from the Kawa-1 and Wei-1 exploration wells will inform future activities and development decisions.
“Based on the Kawa-1 discovery and a better understanding of the tie between seismic and rock type in the northern portion of the Corentyne Block, the Joint Venture has identified additional Maastrichtian, Campanian, and Santonian potential in the central channel complexes between Wei-1 and Kawa-1. The central channel complexes are the focus of ongoing technical work,” CGX said.
Back in May 2019, a Strategic Joint Venture was approved between CGX Energy Inc and Frontera Energy Corporation to farm into two shallow-water offshore Petroleum Prospecting Licences for the Corentyne and Demerara Blocks – both of which are adjacent to ExxonMobil’s Stabroek Block, where multiple discoveries have been made. The farm-in joint venture allowed Frontera to acquire a 33.333 per cent working interest in the two blocks.
CGX had spudded the Kawa-1 well in August of 2021, which had been described at the time by de Alba as one of the most exciting exploration wells in the world. The Kawa-1 well, which is approximately 200 kilometres offshore Georgetown, was expected to de-risk multiple prospects in the Corentyne Block.
Both the Corentyne and Demerara Blocks have been in CGX’s hand for some time without being drilled.