CGX, Frontera consider standalone oil project offshore Guyana

Nov. 10, 2023
CGX Energy Inc. and Frontera Energy have discovered 114 ft (35 m) of net oil pay in the Wei-1 well in the Corentyne Block offshore Guyana.

Offshore staff

TORONTO/CALGARY, Canada — CGX Energy Inc. and Frontera Energy have discovered 114 ft (35 m) of net oil pay in the Wei-1 well in the Corentyne Block offshore Guyana.

The well was drilled by the semisub NobleCorp Discoverer (ex-Maersk Discoverer) 14 km northwest of the Kawa-1 discovery in 1,912 ft (583 m of water) and about 200 km offshore the capital Georgetown, Guyana.

The partners believe the rock quality in the Maastrichtian horizon of the well is analogous to that reported for the Liza Field on the Stabroek. Results, they add, strengthen the case for a potential standalone shallow oil resource development across the Corentyne Block.

Wei-1 targeted Maastrichtian, Campanian and Santonian stacked sands within channel and fan complexes in the northern section of the block. As reported on June 28, 2023, the joint venture (JV)'s data acquisition program at the Wei-1 well included wireline logging, MDT fluid samples and sidewall coring throughout the various intervals. Fluid samples retrieved from the Maastrichtian and log analysis confirmed a sweet medium crude with a gas-oil ratio (GOR) of 400 cf/bbl.

In the Campanian, oil sampled during testing and analyzed downhole was light crude, while in the Santonian, petrophysical analysis indicates oil in core samples. Current interpretation of the Campanian and Santonian horizons suggest both may offer additional upside potential.

Total costs associated with Wei-1 well will likely be in the range $185 million to $190 million.

Based on results from Wei-1 and Kawa-1 wells, the partners retained the SIA (Subsea 7 – Schlumberger) JV, to complete a conceptual field development plan for the northern portion of the block, including subsea architecture, development well planning, production and export facilities.

Further appraisal activities will be needed before commerciality can be determined, but the signs are a potential development of the Maastrichtian horizon could cost less and could be completed quicker than a broader development of the shallow and deep zones across the block.

Houlihan Lokey, a global investment bank and capital markets consultant, is supporting strategic options for the Corentyne Block, including a potential farm down.

Professor Suresh Narine, executive co-chairman of CGX's Board of Directors, said, “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.”