Canadian company announces oil discovery in Guyana

Canadian company CGX Energy Inc and minority partner Frontera Energy Corporation have discovered oil at the Kawa-1 well in the Corentyne Block offshore Guyana.

“Initial results from the Kawa-1 well are positive and reinforce CGX and Frontera’s belief in the potentially transformational opportunity our investments and interests in Guyana present for our companies and the country,” Gabriel de Alba, the chairman of Frontera and co-chairman of CGX, said in a statement.

“Kawa-1 results add to the growing success story unfolding in offshore Guyana as the country emerges as a global oil and gas exploration hotspot,” he said. “On behalf of the joint venture, I’d like to thank the government of Guyana for its long-standing support as we worked together to deliver this successful outcome,” he added.

The Kawa-1 well encountered approximately 177 feet (54 metres) of hydrocarbon-bearing reservoirs, based on initial evaluation of LWD, or logging while drilling, data.

“The well also encountered hydrocarbon-bearing sands in deeper strata (Coniacian or older), which will also be analysed and could become the target of future appraisal opportunities,” said CGX.

“The net pay and fluid properties of the hydrocarbons across the shallow and deep reservoirs will now be confirmed with electric wireline logging and fluid sampling, with results to be disclosed as soon as practicable.”

The company said the Kawa-1 well was drilled to a depth of 21,578 feet (6,578 metres) and targeted the easternmost Campanian and Santonian channel/lobe on the northern section of the Corentyne Block.

CGX expects to wrap up analysis on the well by the end of February, and announce the costs and results thereafter. It’s currently seeking additional financing to meet the costs of the longer-than-expected drilling programme.

The Canadian company is said to have been hunting oil for 20 years.

“Results from the Kawa-1 well represents a positive milestone in the CGX journey as a pioneer oil and gas explorer in the Guyana Basin,” said Executive Co-chairman of CGX Professor Suresh Narine.

“Together with our partner Frontera, CGX looks forward to continuing our socially and environmentally conscious approach to development of Guyana’s oil and gas industry and port infrastructure. We are proud of our long partnership with the government and people of Guyana, and of our reputation as Guyana’s indigenous oil company,” Narine said.

The company is next looking to develop a second exploration well, called Wei-1, in the northwestern part of the Corentyne Block during the second half of 2022, using the Maersk Discoverer semi-submersible mobile drilling rig.

CMC