–Frontera, CGX proceeding with plans for exploration

AN independent prospective resource study has affirmed the world-class prospects of the Corentyne and Demerara blocks, offshore Guyana, operated by joint venture partners Frontera Energy Corporation and CGX Energy Inc.
“As confirmed by the independent resource evaluation commission, the Guyana basin offers the joint venture access to a leading offshore oil opportunity. We expect a robust Guyana work programme with the advancement of our exploration wells, as we continue executing on our plan to realise this value for our shareholders.
“The independent prospective resource study reaffirms our excitement about the world-class prospectivity of the Corentyne and Demerara blocks offshore Guyana,” Chief Executive Officer of Frontera, Richard Herbert, said in a statement released recently by the company.

The independent prospective resource study and report captured the Corentyne North Area, Corentyne Main Area and Demerara Block, offshore Guyana. CGX is the operator of the Corentyne Block under a joint operating agreement with Frontera Energy. CGX has a 66.6 per cent participating interest in the block, with Frontera holding the remaining 33.3 per cent interest in the block.
Outside of the prospective projects, U.S oil giant, ExxonMobil is the only operator, so far, which has started production offshore Guyana. This company – operator of the Stabroek, Canje and Kaieteur blocks – has made 18 discoveries since May 2015 and began production in December 2019 from the Liza Phase one development project. Since 2015, ExxonMobil has increased its estimated recoverable resource base in Guyana to more than eight billion oil-equivalent barrels.

With prospects at the Corentyne and Demerara blocks appearing to be favourable, Frontera and CGX will be looking to follow suit and move ahead with its operations.
The companies announced recently the successful rescheduling of their work commitments with respect to its Petroleum Prospecting License (“PPL”) for the Demerara Block offshore Guyana. The companies have been advised that the existing February 12, 2021 deadline for drilling the next well will be extended to February 11, 2022 subject to documentation.
“We thank the Government of Guyana for its continued support and partnership, which are essential to the long-term success of this strategic initiative for the benefit of all stakeholders,” Chairman of the Board of Directors of the joint venture, Gabriel De Alba, said in a recent statement.
She further added: “With the support of the Guyana Government in re-phasing our exploration plans, we are eagerly progressing with our work programs for Corentyne and Demerara.”

The joint venture continues to advance its exploration programme in both the Corentyne and Demerara blocks with well locations being selected.
In the Corentyne block, plans are proceeding on the Kawa-One exploration well. The well design is complete, procurement of long lead items is in advanced stages and key technical employees being recruited.
The companies also plan to spud the Kawa-One exploration well during the second half of this year and expect to drill the well in a water depth of approximately 1,100 feet targeting the Campanian-Santonian-aged stratigraphic trap, interpreted to be analogous to the discoveries immediately to the east on Block 58 in Suriname. Additional prospects and leads on the northern portion of Corentyne have been identified and are being matured by the joint venture.
In the Demerara block, the companies continue to advance its preparatory work for the Makarapan-One exploration well (previously called Demerara-F), an Aptian stratigraphic prospect on the block. Additional prospects and leads on the block have been identified and are being matured.