CGX strikes oil at Wei-1 well in Corentyne Block – Guyana Chronicle

–still to determine if the hydrocarbon encounter is sufficient for commercial development, company says

JOINT venture partners, CGX and Frontera Energy Corporation, have reported the discovery of multiple oil-bearing intervals at the Wei-1 well in the Corentyne Block offshore Guyana.

According to a media release: “The Well has encountered multiple oil-bearing intervals in the western channel fan complex of the northern portion of the Corentyne block in formations of Maastrichtian and Campanian ages.”

The Wei-1 well is being drilled by CGX and Frontera Energy Corporation (“Frontera”) (the “JV partners”).

The well, planned to be drilled to a total depth of 20,500 feet, to date has been successfully drilled to a depth of 19,142 feet. The Wei-1 well is located 14 kilometres west of the Kawa-1 discovery well announced by the JV partners last year.

“Operations were interrupted when a wire line fluid sampling tool became stuck in the well and was not recovered. An open-hole sidetrack will begin shortly from below the last casing point and will progress to the planned total depth. The JV Partners expect the well to be completed within the original timeframe announced on January 23, 2023 of four to five months after spudding the Well,” the companies said.

A comprehensive logging campaign in the Maastrichtian interval indicated the presence of medium sweet crude oil of 24.9 API. And downhole fluid analysis confirmed light sweet crude oil in the Campanian interval.

“Logging while drilling (LWD) and cuttings indicated the presence of hydrocarbons in the upper portion of the Santonian; fluid samples have not yet been obtained.

Core samples will be attempted in the Santonian interval when drilling resumes. It is not yet certain that the hydrocarbons encountered to date in the well are yet sufficient to underpin commercial development on the Northern portion of the Corentyne Block,” the companies related.

As drilling operations continue, the joint venture partners have revised the well’s total cost estimates to approximately US$175-US$185 million to successfully reach the target total depth, complete the anticipated logging runs and complete the well.

The increase in cost includes the delays associated with the late release of the rig by a third-party and adjusting the spud date to January 2023, and costs associated with fishing and sidetrack operations.

It was reported last year that following “constructive” discussions with the Government of Guyana, CGX Energy Inc. had announced that, together with Frontera Energy Corporation, the company will be focusing exclusively on the exploration opportunities in the Corentyne Block, offshore Guyana.

“Our long partnership with the Government and People of Guyana is a critical aspect of our decisions. We have a significant opportunity on the Corentyne Block following the discovery at Kawa-1. The joint venture is moving ahead rapidly to advance our programme and unlock the potential of the Corentyne Block, for the benefit of all stakeholders,” Executive Co-Chairman of CGX’s Board of Directors, Professor Suresh Narine, said in a statement released recently by the company.

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.