Nabi Oil and Gas Inc says that it is awaiting an analysis of the results of soil and boundary tests in the Mahaica/Mahaicony area using hydrocarbon imaging.
In a statement yesterday, the company was responding to a report in the March 15, 2014 edition of Stabroek News which said that the operations on the East Coast were apparently at a standstill. The report was based on a comment provided over the phone to Stabroek News by someone at the company who declined to provide a name.
Yesterday, the company in a statement signed by Rafael S. Nabi, Company Secretary/Director said that the report was “highly inaccurate and misleading”.
It said that Nabi Oil and Gas has completed a series of soil and boundary tests using hydrocarbon imaging.
“The results of those tests are in the process of being compiled, analyzed and interpreted by specialists abroad. This process is being supervised by the Managing Director of the company, Mr. Anthony Syms, in Trinidad and Tobago. During such time there will be periods of non- activity at all three of the local sites. Further tests will be conducted using seismic surveying, which involves the use of reflected sound waves to produce a `CAT scan’ of the earth’s subsurface and is regarded as a more detailed technique. “
It added that while preliminary studies have shown promising signs, “it is vital for the company to be thorough in its research and analysis to determine whether the long term commitment and investment in the project will be profitable and cost effective.” The statement said that the company has invested over $140m in this venture to date.
“Nabi Oil and Gas is excited to be taking lead on such a bold initiative, as a local company willing to invest in a local product in Guyana’s backyard”, it said.
Last November, the company announced that it had commenced onshore activities in Mahaica/ Mahaicony and hoped given the evidence unearthed that it would be able to find commercial quantities of hydrocarbons. During a media tour of the site for the ongoing exploration along the De Hoop Branch Road, one of three such onshore petroleum exploration campaigns, officials of the company, a subsidiary of the Nabi Construction Company, said that some $70 million had been spent in the current efforts.
President of Hydrocarbon Imaging Services Inc Bob Clark had said, “Basically we are very encouraged by the trends that we see. Now the work is afoot where we find the boundaries and see the commercial viability.” The survey method that was used is what is known in the industry as surface or fluid logging.
When he was asked how soon the company would know what amounts are there, Clark had said that his company could have an answer within weeks. He had said that when the answer is given, further analyses would be needed to determine cost effectiveness before the next steps could be determined. He had said too that since the occurrence of oil and gas would not likely stop at the shoreline, the company will also be conducting surveys offshore in due course.
