Govt. instructs CGX to give up Demerara, Berbice Oil Blocks
Govt. instructs CGX to give up Demerara, Berbice Oil Blocks
Unable to honour work commitments…
Kaieteur News – Frontera Energy Corporation and CGX Energy Inc. have been instructed by the Government of Guyana to relinquish the Demerara and Berbice oil blocks after failing to honour work commitments for both concessions.
In the Demerara Block, the partners were expected to drill two wells. In Berbice, they were required to drill one well and complete acquisition of seismic data. These tasks were to be completed before 2023.
In a statement to the press, Frontera and CGX said they have, in principle, reached an agreement with the Government to allow for the relinquishment of the Demerara Block through a mutual termination agreement which terms remain to be defined and documented. They said such termination agreement would allow relinquishment of the Demerara Block in a timely manner, allowing the people of Guyana to benefit from exploration activities under the stewardship of interested parties.
ON Energy, a 62.5% owned subsidiary of CGX and holder of the Petroleum Prospective Licence of the Berbice block has also been in discussions with the Government of Guyana, and has reached an agreement similar to that made for the Demerara relinquishment application.
The attention of the Canadian partners will now be focused on the Corentyne Block saw an oil discovery being made at the Kawa-1 well earlier this year.
Frontera said it will continue to integrate its findings from the Kawa-1 well into preparations for its second exploration well, called Wei-1, in the third quarter of 2022. The Wei-1 exploration well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana. The Wei-1 exploration well will be drilled in water depth of approximately 1,912 feet (583 metres) to a targeted total depth of 20,500 (6,248 metres) and will target Maastrichtian, Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne Block.
