CGX to spend $15B in Guyana 2021 Drilling Campaign

Mar 09, 2021 News

…eyes similar discoveries to that in neighbouring Suriname

Kaieteur News – Oil exploration in Guyana continues apace and despite a recent run of dry wells by ExxonMobil and its partners in the Stabroek Block, Canadian-based oil and gas firm, CGX, is gearing to spend some $90M to spud an exploration well in its Corentyne block in the second half of 2021.
In a recent update, CGX Energy said the Kawa-1 exploration is expected to be drilled to a depth of approximately 6,500 metres in a water depth of approximately 370 metres and is slated to be drilled in the second half of 2021.
According to the Company, the primary target for the exploration well is a Santonian age, stratigraphic trap (referencing the depth), interpreted to be analogous to the discoveries immediately to the east on Block 58 in Suriname.
The prospect is named after the iconic mountain overlooking the village of Paramakatoi in the Pakaraima Mountains of Guyana.
The Company has since announced too that another well, the Makarapan-1exploration well on the Demerara block, is currently expected to be drilled to a total depth of approximately 3,500m in a water depth of approximately 1,000 metres.
The primary target for this exploration well is an Aptian age, sandstone reservoir. The prospect is named after the Precambrian mountain overlooking the Rupununi Savannahs of Guyana.
CGX did not say when this well is expected to be spudded.
“The Company expects, based on presently available information, that the total cost of the Guyana exploration programme in 2021 will be approximately C$90 million (G$14.8B),” the company said.
CGX is a Canadian oil and gas exploration company that holds three licences in the Guyana – Suriname basin, formed in 1998 by John Cullen and Guyanese, Edris Dookie (who is no longer with the company).
The Company said it is fully funded for two offshore wells that will test multi-billion barrel potential.
The three licences held are “New Demerara Petroleum Agreement,” “New Berbice Petroleum Agreement” and “Corentyne Petroleum Agreement” acquired in 2012 and 2013 from the Government of Guyana.
Two wells were drilled on the Corentyne block licence, however were later abandoned as a dry hole and for safety concerns.
The company is currently surrounded by oil majors and are operating on the Corentyne and Demerara block offshore Guyana in close proximity to the Liza discovery made by oil giant ExxonMobil.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News