The Corentyne Block offshore Guyana
Canadian company CGX Energy Incorporated, which is partnered with Frontera Energy Corporation, has announced an oil find in its Corentyne Block Wei-1 bypass well, after drilling to a total depth of 20,450 feet.
Previously, CGX had drilled the original Wei-1 well to a depth of 19,142 feet. The bypass well was intended to further explore the Santonian target for the well. According to CGX, 71 feet of net oil had previously been encountered.
“Prior to the bypass, the well encountered an aggregate of approximately 71 feet of net oil pay in the secondary target reservoirs in the Maastrichtian and Campanian. Following the bypass, data collected from LWD (Logging While Drilling) and cuttings indicate multiple hydrocarbons shown in the primary target reservoirs in the Santonian interval.”
According to CGX, the results from the well are encouraging and data acquisition will be done via wireline logging and core sampling.
According to the company, further information will be provided when acquisition and evaluation are done. In the meantime, they further projected that the costs to drill the well has been adjusted.
“Results from the well are consistent with pre-drill expectations. The well has confirmed the company’s geologic and geophysical assessment of the block. As operations continue, the joint venture has revised its total Wei-1BP1 cost estimates to approximately $190-$195 million to complete the logging runs, finish well operations, and release the rig.”
“The additional costs are primarily due to the lost sampling tool and the drilling of the bypass well. The well was drilled by CGX and Frontera Energy Corporation. CGX holds a 32 per cent participating interest with Frontera holding the remaining 68 per cent participating interest in the Corentyne Block, offshore Guyana,” CGX further said.
Back in January 2023, after a postponement back in November 2022, the joint venture partners had announced the commencement of drilling activities at the Wei-1 well offshore Guyana in the Corentyne block.
It had been announced that the Wei-1 well would be drilled in a water depth of approximately 583 metres (1912 feet) to an anticipated total depth of 6248 metres (20,500 feet), approximately 200 kilometres offshore from Georgetown. It was expected to take approximately four to five months for the well to reach total depth.
CGX had explained at the time that the well will target Maastrichtian, Campanian, and Santonian-aged stacked sands within channel and fan complexes in the northern section of the Corentyne Block.
Frontera and CGX were initially scheduled to begin drilling the well by November 27, 2022. Additionally, the Noble Discoverer semi-submersible mobile drilling unit that was slated to spud the well was expected to arrive in Guyana’s waters in October last year.
However, in November, the two companies had announced that an agreement was reached with the Guyana Government to start drilling no later than January 31, 2023, to allow contractor Noble Corp Plc to complete current obligations in Trinidad.
Wei-1 is one of two wells in Guyana’s Corentyne Block that the companies have committed to drill. The other well, Kawa-1, struck light oil and gas condensate in May 2022, though the companies had not said how much oil was found or whether it was commercially viable.
The Wei-1 well is located approximately 14 kilometres northwest of the Kawa-1 discovery.
As part of the agreement when the two joint venture companies had partnered, CGX was supposed to transfer 29.73 per cent of its participating interest in the Corentyne Block to Frontera in exchange for Frontera funding the joint venture’s costs associated with the Wei-1 exploration well for up to US$130 million.
Additionally, Frontera would provide up to an additional US$29 million for the Kawa-1 exploration well, Wei-1 pre-drill, and other costs. Only last July, CGX underwent a major shakeup in management.
These changes had included the naming of a new Chief Financial Officer (CFO), George Davis, who took over from Hill York Poon. Poon was retained as CGX’s Director of Finance.
Meanwhile, Paul Langlois was appointed as the new Exploration Manager.
In February 2022, the partners had announced an oil find of 177 feet of oil-bearing reserves at the Kawa-1 well in the Corentyne Block. Since then, however, the company has been making moves to scale back its presence in the other blocks.
