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UK firm grabs more interest in Canje Block as Exxon gears to drill first well
In spite of the depressed environment, Westmount Energy Limited announced yesterday that it has purchased 1.3m common shares in JHI Associates Inc. This will represent approximately 12.7 percent of Westmount’s enlarged issued share capital in the company. The transaction prices the New Ordinary Shares in Westmount at 14.745 pence per share.
Map showing the location of the Canje Block and some of the high profile targets
It should be noted that JHI is a private, Ontario-registered company that was established in 2014. JHI’s main asset is the Canje block offshore Guyana. This block is strategically located next to the Stabroek Block which has delivered 16 discoveries since 2015 with reported recoverable resources in excess of eight billion. ExxonMobil is the operator of both blocks.
In 2016, Exxon had acquired in excess of 6100km2 of 3D seismic data on the Canje Block. Subsequent processing and interpretation of the dataset has been used to define a substantial prospect inventory on the block in which three prospects, Bulletwood, Jabillo and Sapote ,were named as high-grade potential targets for initial drilling.
Kaieteur News also understands that as a result of a farm-out by Total in 2018, JHI is carried for the drilling of up to four wells and is funded for the drilling of additional wells.
Subject to approvals from the government, drillship availability and disruptions from the COVID-19 pandemic, it is anticipated that the first well, Bulletwood-1, will be drilled before June month end with the possibility of an additional well by year-end.
The Canje Block lies 180km offshore Guyana in deep to ultra-deep water. According to JHI’s website, Canje’s environment of deposition is unique among offshore Guyana blocks in that it contains both continental slope and basin floor terrain. The company explained that the majority of the discoveries offshore Guyana to date have been made in the slope environment. Canje is expected to be the first block offshore to test prospects on the basin floor, which have the potential to contain larger accumulations of recoverable hydrocarbons.
JHI was also keen to note that Canje’s source story is also unique in that it is blanketed by two world-class source rocks. The company explained that present across the Guyana-Suriname Basin is the Cenomanian/Turonian source, which is locally known as the “Canje source rock.” This source has been actively generating hydrocarbons for ~6 million years. The Canje Block is also covered by a much thicker and older Lower Albian source rock, which was in place and generating hydrocarbons for over 40 million years.
JHI notes that the proximity to these world-class source rocks means that reservoirs on the Canje Block are in direct contact with the source, and are charged through vertical migration. Effectively, Canje’s reservoirs are filled first before hydrocarbons migrate up-dip to other blocks.
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