ALTHOUGH disappointed with failure to find oil in  Eagle-1 well, CGX Energy  will be moving on to determine the drilling location for its next well on its  Petroleum Prospecting  Licence (PPL) in the Corentyne. Kerry Sully, President and CEO, said yesterday, “Although the results of the Eagle-1 well are disappointing for all stakeholders, this test has gathered valuable information that will assist CGX with determining the location for its next well to be drilled on the Corentyne PPL and for other future targets.
He said that the company’s geosciences team has been interpreting the recently acquired 3D and additional prospects have been identified.
In addition, the team had established that the up-dip termination of the Eagle Deep Turonian prospect is at a shallower depth than originally anticipated. Now that the Eagle-1 well has finished drilling, and in response to expressions of interest, CGX is re-opening the data room to re-start the joint venture process.”
Local analysts say that the optimism is not unrealistic, since in the oil business the discovery of one oil-producing well can help a company regain the losses from several dry wells.
“So even though drilling for oil is an expensive and complex undertaking, it is worth the effort when oil is discovered,” the source said.
CGX made a release about the Eagle-1 well being a “dry hole” earlier this week, after drilling up to a depth of  4,328 metres on April 25.
The company said that during drilling, the Eagle-1 well encountered oil and gas shows through the objective Eocene and Maastrichtian geologic zones, and at the yet to be confirmed Oligocene zone, indicating an active petroleum system where generated hydrocarbons have migrated through the pre-Miocene section drilled by the well.
It said that  although wire-line logs provided encouraging results with high resistivities correlating with sandstones that had encountered oil shows, additional open hole logs were however necessary to determine the nature of the fluids in those zones.
Hence, CMR (combinable magnetic resonance) and MDT (modular formation dynamics) were run, and both logs identified the presence of good quality sandstone reservoirs that unfortunately proved to be water bearing.
Further analyses will be conducted to verify the geological age of the drilled section, as well as the chemical composition of the recovered fluids.
Meanwhile, drilling operations at the Jaguar-1 well on the Georgetown PPL, in which CGX has a 25% interest with partners Repsol Exploración S.A (operator), YPF Guyana Limited and Tullow plc, is progressing as planned.
The total depth for this well is projected at 6,500 metres to test the Turonian geologic zone. Drilling at the Jaguar-1 well is expected to be completed in August.
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.
The Company is managed by a team of experienced oil and gas and finance professionals from Guyana, Canada, the United States and the United Kingdom.