Oil company, CGX Energy has passed the 5000 feet mark in drilling its exploration well off the Corentyne coast.
The company plans to drill to about 13 944 feet (4250 metres) and this could be completed within four to six week, Minister of Natural Resources and the Environment, Robert Persaud told Stabroek News on Saturday. “They are more or less within their timeframe” though there were some delays due to weather, he said.
CGX on February 13 announced that it had begun drilling for oil at its Eagle-1 Well in its 100% owned and operated Corentyne Petroleum Prospecting Licence – the same spot it was evicted from by Surinamese gunboats 12 years ago. CGX’s rig is the second to be drilling for oil simultaneously offshore Guyana. CGX also has a 25% interest in the other licence which includes Repsol and Tullow.
CGX’s well is being drilled by the Ocean Saratoga semi-submersible drilling rig owned by a subsidiary of Diamond Offshore Drilling Inc. Drilling was expected to take approximately 60 days.
The other well being drilled is at Repsol’s Jaguar-1 site. Drilling is being done by the Atwood Beacon. Drilling started on February 7 and could take six months as it goes to a depth of 21,325 feet. In relation to this well, Persaud said that it has passed 10 000 feet and the company is ready to start installing the casing. The companies are proceeding cautiously and are being monitored, he stressed.
Repsol had expended US$52 million on its exploration operations and this figure is expected to reach a total of US$180 million. The CGX operation at the Eagle well will cost the company some US$55 million. While the cost to operate the Ocean Saratoga will be US$500,000 per day, it will cost US$650,000 per day to operate the Atwell Beacon.
Interest in the Guyana/Suriname basin amplified after explorer Tullow struck oil last year off of French Guiana raising the prospect of the opening of a major offshore oil producing province in South America and boosting its shares.
