THE development of the oil and petroleum sector is continuing with a mapping exercise currently under way in the Mahaica- Mahaicony area. The area is being surveyed to ascertain the potential of commercially viable quantities of oil and gas by local contracting company, S. NABI and Sons which has a lease for 2,300 square kilometres.  

Conducting the testing and mapping, using specialised equipment is Hydrocarbon Imaging Services Inc., President of the Texas-based firm, Robert Clark, explained that his firm has successfully conducted operations in Peru, Suriname, Trinidad and Tobago and several African countries.
“We have a good idea of comparisons, and as I come to Guyana, there is a lot of anecdotal information. There’s very sketchy information on historical wells, but even with that we could still get an idea of the boundaries and the identifying signatures of hydrocarbons, oil and gas,” Clark said.
The head of the company declared that tests indicate that there are hydrocarbons present but “it all comes down to commercial quantities”.  He explained that testing is done by looking at the natural gamma ray signatures using Geiger counters, since hydrocarbon deposits are inherently radioactive and testing for gases such as methane, carbon dioxide, and several others in the soil. Grids are then mapped out to ascertain certain trends, according to Clark. “This is more of a channel sand normally, and what we try to do is find the sweet spot and then bring in the other sciences, whether it’s seismic or otherwise, to see its structure….We have to integrate historical geology, historical well control,  we do not operate in a vacuum. We have a science that is mathematically based, that is nuclear based, that is predictable and repeatable.
“The signs thus far are very encouraging and there is also the presence of gas (methane) as well, he added. The area being surveyed is known for oil seeps and soil outcrop also known as reefs, clear indicators of hydrocarbons being present in the subsurface of the soil.
For Engineer and Managing Director of the NABI Oil and Gas Inc, Antony Syms, the aim is to ascertain whether they can drill to reach any deposits cost effectively and whether it is commercially viable to do so. “The cost of production must be less than the selling price, or we don’t have a business,” Syms said.
Minister of Natural Resources and the Environment, Robert Persaud, who was on hand to witness the testing being conducted, said that there are three companies which are currently conducting similar exercises in other areas; one is currently offshore and the other is in the south of Guyana.  “These are very early days and while it’s good to temper expectations, there are many, many more stages that the company or other exploration companies will have to undertake before getting to that point; but certainly if there is that potential, it is important that, as a nation, we examine and explore that potential, because it’s good for our country’s development and certainly it shows that we are committed, at the end of the day, to developing our hydrocarbon sector”.
He noted that while there are challenges on and offshore, in terms of hydrocarbon exploration, government remains committed to giving much support. “I’ve mandated the GGMC, the Petroleum Division, that whatever support we need to give different companies in this field, that we give them. We don’t expect that the companies will hold and watch on and wait for something to happen, they have to make it happen,” Minister Persaud stated.
NABI Oil and Gas Inc. secured their prospecting licence in June of 2012, and Minister Persaud said government was happy to see some progress in terms of their work.
The company has already invested over $70M on the project and anticipates that it may be able to drill for further testing and extraction sometime in 2014. According to company representatives, the NABI Company is the first locally owned firm to engage in this type of activity.
Government remains optimistic that petroleum and gas will be found in commercial quantities and though this will take some time, it will further move the nation along the development path.