–CGX, Frontera mull spudding of second well with Maersk Discoverer drillship

DRILLING for oil at the Kawa-1 well, presumably one of the “most exciting” exploration wells in the world, started on August 22, according to operator, CGX Energy Inc. CGX and its joint venture partner, Frontera Energy Corporation, announced on Monday that the Kawa-1 well was spudded by Maersk Drilling Holdings’, Maersk Discoverer, a sixth-generation, semi-submersible which, prior to arriving in Guyana’s waters, was working in Trinidad for another operator.
The Kawa-1 well is located in the north-east quadrant of the Corentyne Block, approximately 200km offshore Georgetown. The water-depth is approximately 355 metres (1,174 ft), and the expected total depth of the Kawa-1 well is 6,575 metres (21,700 ft).
Co-Chairperson of CGX’s Board of Directors and Chairman of Frontera’s Board of Directors, Gabriel de Alba, was quoted by the company as saying: “Today [August 22] is an important day for CGX and Frontera as we continue to make substantial progress in realising the value of our investments in Guyana. The joint venture has spudded the Kawa-1 well, which we believe is one of the most exciting exploration wells in the world.”
It was reported recently that the estimated cost for the Kawa-1 project is close to US$85 million. The well is expected to reach total depth in the first half of December 2021.

According to CGX, with multiple opportunities based on internal geological studies, the Kawa-1 well targets light oil, in combination with structural-stratigraphic traps in large Santonian and Campanian slope fan complexes. The primary target is a Santonian sand with ‘up-dip’ and lateral ‘pinch-out’ of the reservoir, as well as counter-regional dip and structural closure. The Kawa-1 well is also expected to penetrate secondary objectives in a shallower Campanian sand and a deeper Santonian sand, with the expectation of targeting additional hydrocarbon potential. CGX said the stacked targets in Kawa-1 are considered similar to the discoveries immediately adjacent to the Corentyne Block, in Block 58 in Suriname. Further, the Kawa-1 well is expected to de-risk multiple other prospects on the block, which also have stacked reservoirs, and similar structural geometries. Considering the potential of the Corentyne Block, CGX and Frontera said that they will be drilling a second well offshore Guyana under conditions and terms similar to that of Kawa-1. “The joint venture has also exercised its option to drill a second well offshore Guyana under similar terms and conditions,” de Alba said. The Maersk Discoverer will be used for this second project, which is yet to be named.
“I am pleased with this major operational milestone for CGX and Frontera, and appreciate the ongoing support of the Guyanese government, our employees, and our other various partners as we work together to maximise benefits for all of our stakeholders,” de Alba was quoted as saying.

Back in April, it was reported that Frontera Energy Corporation has injected US$19 million (approximately G$4.1B), in the form of a loan into CGX.
Frontera Energy Corporation, which, together with CGX, holds Petroleum Prospecting Licences for the Corentyne and Demerara Blocks, has announced that it has entered into an agreement with CGX for a US$19 million loan, which will enable the company to continue financing its share costs related to the Corentyne, Demerara and Berbice Blocks, the Berbice Deep-Water Port (BDWP), and other budgeted costs, as agreed to by Frontera.
It was reported in February that an independent prospective resource study has affirmed the world-class prospects of the Corentyne and Demerara Blocks.
“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,” former Chief Executive Officer (CEO) of Frontera, Richard Herbert said.
The independent prospective resource study and report captured the Corentyne North Area, Corentyne Main Area, and Demerara Block offshore Guyana.