The Takutu Oil and Gas Inc and the Government of Guyana have concluded a renewal agreement and as a result the former will recommence exploration for oil along the Takutu Basin, which had started in 2010, says a press release from the Government Information Agency (GINA).
The signing took place at the Ministry of Natural Resources and the Environ-ment yesterday. President of Groundstar Resources, the parent company of Takutu Oil and Gas Inc, signed on behalf of that company.
Minister of Natural Resources and the Environment Robert Persaud said the company had undertaken some work in the past and “expressed satisfaction that they have the level of confidence to make further investments.” The Minister added there is also the commitment of the company to work closely with the surrounding communities, according to GINA.
“We insist that people in the mining corporations develop a level of corporate and social responsibility…I wish to make this absolutely clear that the area of prospecting falls outside any Amerindian titled or demarcated area,” Minister Persaud said.
The Minister added that prospecting in the Takutu area is just a part of what is taking place in the country in terms of oil and gas exploration, “as many such activities are occurring both onshore and offshore.”
The release said that Manager, Petroleum Division, Guyana Geology and Mines Commission (GGMC) Newell Dennison said the renewal of the prospecting licence for the joint venture will see Takutu Oil and Gas Inc., resuming operations in the Takutu Basin.
“That basin is where, in 1982-1983, Home Oil made their first discovery in oil…we have had operations there between 1989-1993 with Hunt Oil and then Takutu Oil and Gas,” GINA quoted Dennison as saying.
He added that Takutu Oil and Gas Inc. between December 2010 and April 2011 drilled a well, and realised unfavourable results. “However they encountered traces of light oil and gas, as such they wish to continue their exploration efforts in that area,” Dennison was quoted as saying. “This renewal of this licence is going to permit them to do it,” Dennison said.
GINA noted that according to Dennison, it is expected that within the first phase of the operations there will be another exploration well at a site that will be determined after an analysis coupled with further exploration activity in the basin is done.
The release said that Groundstar’s President, Kam Fard said that he was pleased with the cooperation received thus far from GGMC and the Ministry.
“We hope soon- by the end of this term, we will have a good handle of and the potential of this basin,” Fard is quoted as saying.
According to GINA, Groundstar Resources Ltd. had established Takutu Oil and Gas to drill up to two exploration wells in conjunction with its partner, Canacol Energy Limited. The first well, identified as Apoteri K2, was drilled as a “deviated well” to test the oil bearing fractured reservoir discovered in Karanambo 1 in a more favourable structural position, the release said. It noted that Groundstar Resources Ltd was awarded its Takutu Basin Petroleum Prospecting Licence on July 13, 2005.
“The bottom hole location for the K-2 well was approximately 400 meters northwest of the Karanambo 1 discovery well and targeted the same productive reservoirs that tested light oil in 1982,” the release said.
It said too that in 1982, Home Oil had discovered high quality crude oil in the fractured Lower Jurassic Apoteri volcanic and Manari sedimentary reservoirs in the Karanambo 1 well.
“Three large structural prospects with potential for fractured Apoteri-Manari objectives were defined, namely Apoteri K2 Offset, Pirara River and Rewa. Conventional sandstone reservoirs are considered a secondary target in the Rewa Prospect and possibly elsewhere in the basin,” the GINA release said.
