THE Takutu Oil and Gas Inc., which commenced drilling in the Takutu Basin in 2010 for crude oil, will now recommence their prospecting efforts, as the renewal agreement was signed by the government and Kam Fard, President for Groundstar Resources Ltd, the parent company of Takutu Oil and Gas Inc. For decades,  Governments of Guyana have been soliciting various investors to test and drill for crude oil within Guyana’s territorial borders.
Minister of Natural Resources and the Environment, Robert Persaud said the company had undertaken some work in the past and expressed satisfaction that they have the level of confidence to make further investments.
He added that there is also the commitment of the company to work closely with the surrounding communities.
“We insist that people in the mining corporations develop a level of corporate and social responsibility…I wish to make this absolutely clear that the area of prospecting falls outside any Amerindian titled or demarcated area,” Minister Persaud said.
He added that prospecting in the Takutu area is just a part of what is taking place in the country in terms of oil and gas exploration, as many such activities are occurring both onshore and offshore.
Manager, Petroleum Division, Guyana Geology and Mines Commission (GGMC), Newell Dennison said the renewal of the prospecting licence for the joint venture will see Takutu Oil and Gas Inc., resuming operations in the Takutu Basin.
“That basin is where, in 1982-1983, Home Oil made their first discovery in oil…we have had operations there between 1989-1993 with Hunt Oil and then Takutu Oil and Gas,” Dennison said.
He added that Takutu Oil and Gas Inc., between December 2010 and April 2011, drilled a well, and realised unfavourable results. However, they encountered traces of light oil and gas, and as such they wish to continue their exploration efforts in that area.
“This renewal of their licence is going to permit them to do it,” Dennison said.
Groundstar’s President Kam Fard said that he was pleased with the cooperation received thus far from the GGMC and the ministry, and he is quite confident that the area is a prospective basin.
Groundstar Resources Ltd. had established Takutu Oil and Gas to drill up to two exploration wells in conjunction with its partner, Canacol Energy Limited. The first well, identified as Apoteri K2, was drilled as a “deviated well”, to test the oil bearing fractured reservoir discovered in Karanambo 1 in a more favourable structural position.
The bottom hole location for the K-2 well was approximately 400 metres northwest of the Karanambo 1 discovery well, and targeted the same productive reservoirs that tested light oil in 1982.
Groundstar Resources Ltd was awarded its Takutu Basin Petroleum Prospecting Licence on July 13, 2005.
In 1982, Home Oil had discovered high-quality crude oil in the fractured Lower Jurassic Apoteri volcanic and Manari sedimentary reservoirs in the Karanambo 1 well.
Three large structural prospects with potential for fractured Apoteri-Manari objectives were defined, namely Apoteri K2 Offset, Pirara River and Rewa. Conventional sandstone reservoirs are considered a secondary target in the Rewa Prospect and possibly elsewhere in the basin.
Canacol, a Calgary, Alberta-based company has a 65% non-operated working interest in the Takutu PPL.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in the Middle East, North Africa and South America. (GINA)