The Canadian oil exploration company, Groundstar Resources Limited will have until May 2014 to drill on its Takutu site and will invest US$7 million in the first phase under the new terms of its licence which was recently extended.
The Canadian explorer has been and continues to partner with Canacol on oil exploration in the Takutu Basin in Region Nine. Kam Fard, President and Chief Executive Officer of Groundstar Resources Limited said in a statement that the joint venture partners have been granted a three-year extension for the Takutu Petroleum Prospecting Licence by the Guyana Geology and Mines Commission (GGMC) and this ends on May 21, 2015.
“The work commitment for the first phase of a two phase agreement is drilling of an exploration well by May 2014, in the Takutu Basin with a financial commitment of US$7 million. The work program for the second phase will be developed by GGMC and the joint venture partners jointly,” the statement said. It added that Groundstar, the operator, has a 10% working interest that is carried by Canacol to first commercial production but effective September 1, 2012 the operatorship will be transferred to Canacol.
Groundstar has been incorporated here as Takutu Oil and Gas Inc and the Government Information Agency (GINA) reported recently that the company and government concluded a renewal agreement and as a result the former will recommence exploration for oil along the Takutu Basin, which had started in 2010.
Takutu Oil and Gas Inc., between December 2010 and April 2011, drilled a well, and realised unfavourable results. Last April, the company announced that it would abandon its Apoteri, Rupununi drill site after reaching the intended depth and seeing no signs of oil in commercial quantities.
The company had previously outlined plans to drill another well at one of two other locations. Another explorer, Home Oil had sunk a well in the same area in 1982 but while oil was found it was not evident in commercial quantities. Home Oil had discovered high quality crude oil in the fractured Lower Jurassic Apoteri volcanic and Manari sedimentary reservoirs in the Karanambo #1 well and this was seen as proof that the rift basin had an active petroleum system and the commercial oil could exist in the basin.
