CGX reveals spending plan for drilling campaign off Guyana

Canadian oil and gas company CGX Energy has revealed details about the anticipated budget for an upcoming exploration drilling campaign offshore Guyana.

CGX Energy said last week that its expectation, based on presently available information, was that the total cost of the Guyana exploration program in 2021 would be approximately $90 million.

The program consists of two wells, the Kawa-1 well and Makarapan-1 well located in the Corentyne and Demerara blocks, respectively.

CGX Energy and Frontera Energy are joint venture partners in these offshore blocks.

Following an independent prospective resource study, Frontera Energy has recently said the JV’s views about the high prospectivity of the Corentyne North Area, Corentyne Main Area, and Demerara block have been confirmed.

The Kawa-1 exploration well on the Corentyne block is currently expected to be drilled to a depth of approximately 6,500 metres in a water depth of approximately 370 m and is slated to be drilled in the second half of 2021.

The primary target is a Santonian age, stratigraphic trap, interpreted to be analogous to the discoveries immediately to the east on Block 58 in Suriname.

The prospect is named after the iconic mountain overlooking the village of Paramakatoi in the Pakaraima Mountains of Guyana.

The Makarapan-1 exploration well on the Demerara block is currently expected to be drilled to a total depth of approximately 3,500 m in water depth of approximately 1,000 m. The primary target is an Aptian age, sandstone reservoir.

The prospect is named after the Precambrian mountain overlooking the Rupununi Savannahs of Guyana.