–submits revised project summary for US$93M Wei-1 well to EPA for approval

HAVING submitted its revised project summary for review by the Environmental Protection Agency (EPA), CGX Resources Inc. (CRI), a wholly owned subsidiary of CGX Energy Inc., plans to commence operations at the Wei-1 well- the company’s latest project in the Corentyne Block offshore Guyana- by May, this year.

This project, which is expected to cost roughly US$93 million, targets large Campanian and Santonian prospects in structural stratigraphic traps.

“Based on exploration and assessment activities in the Corentyne Block, including a 3D seismic survey, CRI believes the reservoirs potentially contain an economic accumulation of hydrocarbons,” the company said.

The Wei-1 well will be drilled as a vertical well utilising a semi-submersible rig. The company has, so far, secured an option to use semi-submersible rig Maersk Discoverer, a mobile offshore drilling unit (MODU) from Maersk Drilling.

The drilling of Wei-1 is planned to be executed within the period May 2022 to August 2022. And, according to CRI, the project involves two stages: drilling and decommissioning/plugging and abandonment.

“These operations will involve offshore and onshore support activities. The operations are expected to be conducted 24 hours per day for the estimated days. In the event hydrocarbons are encountered, the drilling programme may be extended. The project will involve shore base facilities and marine/aviation services to support the drilling activities,” CRI said.

Providing that the exploration activity is successful, the company will drill nearby appraisal wells. The design for those wells will be very similar to that of Wei-1. However, no programme has been formulated as yet.
In February, CGX, less than two months after encountering hydrocarbons at the Kawa-1 well in the Corentyne Block, announced that its drilling campaign had produced greater results.

The company, in a press statement, announced that the Kawa-1 well encountered approximately 177 feet (54 metres) of hydrocarbon-bearing reservoirs within Maastrichtian, Campanian and Santonian horizons based on initial evaluation of Logging While Drilling (LWD) data.

Those intervals are similar in age and could be correlated using regional seismic data to recent successes in Block 58 in Suriname and the lucrative Stabroek Block offshore Guyana.
Speaking about the discovery, Gabriel de Alba, Chairman of CGX’s main shareholder, Frontera, said: “Initial results from the Kawa-1 well are positive and reinforce CGX and Frontera’s belief in the potentially transformational opportunity our investments and interests in Guyana present for our companies and the country.

“Kawa-1 results add to the growing success story unfolding in offshore Guyana as the country emerges as a global oil and gas exploration hotspot. On behalf of the joint venture, I’d like to thank the Government of Guyana for its long-standing support as we worked together to deliver this successful outcome.”

In addition to this significant discovery, the company also encountered hydrocarbon-bearing sands in deeper strata, which would be further analysed and could even become a target for future appraisal opportunities.
The Kawa-1 well was drilled to a depth of 21,578 feet (6,578 metres) and targeted the easternmost Campanian and Santonian channel/lobe complex on the northern section of the Corentyne block.

Executive Co-Chairman of CGX’s Board of Directors, Professor Suresh Narine, was quoted as saying: “Results from the Kawa-1 well represent a positive milestone in the CGX journey as a pioneer oil and gas explorer in the Guyana Basin.
“Together with our partner Frontera, CGX looks forward to continuing our socially and environmentally conscious approach to development of Guyana’s oil and gas industry and port infrastructure. We are proud of our long partnership with the Government and People of Guyana and of our reputation as Guyana’s Indigenous Oil Company.”

His comments were followed by remarks from Chief Executive Office of Frontera, Orlando Cabrales, who said: “We are very pleased to have successfully drilled the Kawa-1 well with our partner CGX. I commend the significant efforts of all the talented employees and contractors involved and their dedication to helping this partnership achieve this important milestone. We now have the ability to focus our efforts on potentially transformational opportunities and to continue our positive relationship with the Government and People of Guyana.”