CGX, Frontera announce “exciting” results at Wei-1 discovery in Corentyne Block

Nov 11, 2023 ExxonMobil, News, Oil & Gas

---

Kaieteur News – The Canadian Joint Venture partners, CGX and Frontera, have revealed “exciting” results from its second oil discovery in the Corentyne Block, Wei-1.

The Wei-1 discovery was announced by the partners on June 28, 2023. At that time, the Joint Venture (JV) said a down hole, tool failure prevented oil samples from being obtained at the time. Consequently, rock and fluid properties were obtained to be analyzed by an independent third-party laboratory to define net pay and a basis for the evaluation of this interval.

In a statement on Thursday evening, CGX and Frontera announced the discovery of a total of 114 feet (35 meters) of net pay at the Wei-1 Well, located approximately 200 kilometers offshore from Georgetown, Guyana.

It said, “The Joint Venture believes that the rock quality discovered in the Maastrichtian horizon in the Wei-1 well is analogous to that reported in the Liza Discovery on Stabroek block.”

To this end, the JV believes the results further demonstrate the potential for a standalone shallow oil resource development across the Corentyne block. To date, the Joint Venture has discovered a total net pay of 342 feet (104 meters) on the Corentyne block.

Additionally, it was announced that Houlihan Lokey, a leading global investment bank and capital markets expert, is supporting active pursuit of strategic options for the Corentyne block. The JV said this includes “a potential farm down, as it seeks to develop this potentially transformational oil investment in one of the most attractive oil and gas destinations in the world today, Guyana.” It added however, “There can be no guarantee that the review of strategic options will result in a transaction.”

Frontera’s Board of Directors, and Co-Chairman of CGX’s Board of Directors, Gabriel de Alba said, “The proven presence of medium sweet crude oil in high-quality Maastrichtian cored reservoir at the Wei-1 Well, combined with the previous discovery of 68 feet of hydrocarbon log pay in Maastrichtian blocky sands in the Kawa-1 well in 2022, has confirmed the significant potential of the Corentyne block.”

He added that with the JV’s two-well drilling program now complete, and as a result of inbound expressions of interest from various global third parties, the partners are working with Houlihan Lokey to support a review of strategic options for the Corentyne block, including a potential farm down, as it progresses its efforts to maximize value from its potentially transformational investments in Guyana.

Meanwhile, Chief Executive Officer of Frontera, Orlando Cabrales commented that the independent lab results from the Wei-1 Well are particularly encouraging for the Maastrichtian zone.

He explained, “Results indicate that the rock quality in the Maastrichtian at Wei-1 is analogous to that reported in the Liza discovery on Stabroek block, further demonstrating the potential for a standalone shallow oil resource development across the entire Corentyne block.”

He added that the Joint Venture believes that, further potential upside exists in the Campanian, in which mobile light oil was proven in downhole analysis of samples, and the Santonian, which has log pay and remains a potential target for future developments.

Cabrales said, “As is a normal course following discoveries such as those made by the Joint Venture at Wei and Kawa, additional appraisal activities will be required to further assess commerciality and as input to optimize subsurface and production system development planning.”

Underscoring the exciting results of the Wei-1 discovery was Executive Co-Chairman of CGX’s Board of Directors, Professor Suresh Narine.

According to him, “These are exciting times for the Joint Venture. The Wei-1 Well met the Joint Venture’s expectations with the successful discovery of oil. Wei-1 also delivered a tremendous amount of data, which the Joint Venture is now incorporating into its geologic and geophysical models to update its initial evaluation of Kawa, and the potential in the Maastrichtian in particular, as well as its view of the potential of the remaining undrilled prospects including the prospective areas in between the Wei-1 and Kawa-1 wells.”

He said Houlihan Lokey’s extensive expertise in the global O&G sector will be tapped to complete a strategic review of options for the Corentyne block in one of the most “exciting exploration basins in the world.”

During a recent press conference, Vice President Bharrat Jagdeo told reporters that CGX and Frontera had applied to government for a two-year extension to understand the number of barrels that could be produced at the discovery. He also noted that government was inclined to grant the approval.

About Wei-1

The Wei-1 well, located approximately 14 kilometres northwest of the Joint Venture’s previous Kawa-1 discovery, was safely drilled by the Noble Corp Discoverer semi-submersible mobile drilling unit in water depth of approximately 1,912 feet (583 metres) to a total depth of 20,450 feet (6,233 meters). The Wei-1 well targeted Maastrichtian, Campanian and Santonian aged stacked sands within channel and fan complexes in the northern section of the Corentyne block. As reported on June 28, 2023, the Joint Venture’s data acquisition program at the Wei-1 well included wireline logging, MDT fluid samples and sidewall coring throughout the various intervals.

The JV reported that there were no safety or environmental incidents throughout Wei-1 well operations.

It also said on Thursday that total costs associated for the Wei-1 Well are now estimated to be within $185-190 million following the successful implementation of several initiatives.

---

• Corentyne, discovery, Kawa-1, oil, Wei-1

---