Drilling new oil well in Corentyne Block estimated to cost US$85M - CGX

Drilling new oil well in Corentyne Block estimated to cost US$85M – CGX

Jul 14, 2021 News

Kaieteur News – Canadian based exploration company, CGX Energy Inc., says that it is preparing to drill another oil well offshore Guyana in two weeks time and estimates the cost to be some US$80M to US$85M.
The company made the announcement a few days ago when it provided an update on the activities related to its offshore exploration blocks, deep-water port project and on the results of the CGX Annual General Meeting.
According to CGX and its partner, Frontera Energy Corporation, the Kawa-1 well in the Corentyne Block is expected to be spud between August 1 and 15 and is expected to reach its total depth in approximately 85 days. CGX said it is expected that the well will be financed from one or more options that are currently being considered by the company. The options were not disclosed.
As previously announced, Kawa-1 will be drilled by the Maersk Discoverer, a sixth-generation semi-submersible currently working in Trinidad for another operator.
CGX Resources Inc., a wholly owned subsidiary of CGX and operator of the Corentyne Block, said it has secured all the necessary contracts for the drilling of Kawa-1 and is now commencing operational activities to meet the targeted spud window.
The announcement by CGX comes following a similar pronouncement in January this year that it would be looking to recommence drilling activities in its oil blocks following years of delay.
CGX’s decision to drill comes after years of delays on the part of this Canadian-based exploration company. In fact, Kaieteur News had reported since 2012, CGX Resources Incorporated had been in possession of a licence for the Corentyne Block.
According to the agreement signed with the then government on November 12, 2012 for the offshore concession, CGX was supposed to drill at least four wells on the block by 2019. However, this did not occur. Instead of fully meeting its obligations, CGX had drilled two wells in 2012, both of which were abandoned — Eagle-1 as a dry hole and Jaguar-1 for safety concerns. Since then, it has made promises to drill more wells in search of oil but until recently, never did.
The primary target for the Kawa -1 well is a Santonian age, stratigraphic trap and is located in the northeast quadrant of the Corentyne Block approximately 200 km offshore from Georgetown.
The water depth is approximately 355 meters (1,174 ft.) and the expected total depth of the Kawa-1 well is 6,575 meters (21,700 ft.).

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