The decision follows the discovery at the Kawa-1 exploration well on the Corentyne Block.
CGX will continue to integrate its findings from the Kawa-1 well into preparations for its second exploration well, called Wei-1, to be spud in third-quarter 2022. The Wei-1 exploration well will be located approximately 14 km northwest of the Kawa-1 exploration well in the Corentyne Block, approximately 200 km offshore from Georgetown, Guyana.
The Wei-1 exploration well will be drilled in water depth of approximately 1,912 ft (583 m) to a targeted total depth of 20,500 ft (6,248 m) and will target Maastrichtian-, Campanian- and Santonian-aged stacked channels in a western channel complex in the northern section of the Corentyne Block.
Given the importance of the Demerara Block to Guyana, CGX has in principle reached an agreement with the government to allow for the relinquishment of the Demerara Block through a mutual termination agreement, which terms remain to be defined and documented. Such termination agreement would allow relinquishment of the Demerara Block in a timely manner, allowing the people of Guyana to benefit from exploration activities under the stewardship of interested parties.
ON Energy, which is a 62.5% owned subsidiary of CGX and is the holder of the petroleum prospective license of the Berbice Block, also has been in discussions with the government of Guyana, and it has reached an agreement in principle to relinquish the Berbice Block through a mutual termination agreement, which also remains to be defined and documented, so the Berbice Block can be relinquished in a timely manner, similar to the Demerara Block.