CGX Energy Inc has announced that approximately US$90 million would be spent on its Guyana exploration programme in 2021.
In a recent statement, CGX stated that the Kawa-1 exploration well on the Corentyne block is currently expected to be drilled to a depth of approximately 6,500 metres. They said that the well is expected to be spudded in the second half of 2021.
In a recent update, the company informed that the Kawa-1 prospect has been matured to a drill-ready status and well design is complete.
According to the statement, “the primary target is a Santonian age, stratigraphic trap, interpreted to be analogous to the discoveries immediately to the east on Block 58 in Suriname.”
Meanwhile, CGX noted that preparatory work for the Makarapan-1 exploration well on the Demerara block continues to advance and is currently expected to be drilled to a total depth of approximately 3,500 metres. It was stated that the primary target is an Aptian age, sandstone reservoir. No timeline was provided regarding the spudding of the Makarapan-1 well.
The Kawa-1 prospect is named after the iconic mountain overlooking the village of Paramakatoi in the Pakaraima Mountains of Guyana, while the Makarapan-1 prospect is named after the Precambrian mountain overlooking the Rupununi Savannahs of Guyana.
“The Company expects, based on presently available information, that the total cost of the Guyana exploration program in 2021 will be approximately US$90 million,” the statement concluded.
Additional prospects and leads on the northern portion of the Corentyne, and also on the Demerara Block have been identified and are being matured by the company.
CGX pointed out that basin-wide studies, which include hydrocarbon generation and migration analysis and biostratigraphic studies, are underway and will be incorporated into the exploration efforts to further refine the projects and reduce exploration risk.
In February, Frontera Energy Corporation disclosed that a total of 32 drill prospects were identified in the offshore Corentyne and Demerara blocks.
Frontera holds a direct working interest of 33.3% in both the offshore Corentyne and Demerara blocks, and together with CGX, shares ownership of 73.8%, resulting in a total consolidated working interest of 82.6% in the blocks.
The two partners commonly referred to as the “Joint Venture”, contracted McDaniel & Associates Consultants Ltd to conduct a resource evaluation of their concessions in the Guyana-Suriname basin. Frontera announced that McDaniel had identified 27 prospects in the Corentyne block and five in the Demerara block. A statement by the company noted that 64% of the fluid content considered for the prospects, was comprised of oil, 28% natural gas, and the remaining 8% as condensates.
CGX has drilled a number of wells here but has not struck oil in commercial quantities.
