The government on Wednesday welcomed the discovery of oil at the Wei-1 exploration well in the Corentyne Block, undertaken by CGX Energy Incorporated and Frontera Energy Corporation.
A release from the Ministry of Natural Resources alluded to the discovery of hydrocarbon-bearing sandstone reservoirs within the Maastrichtian, Campanian, and Santonian intervals.
It said that the Maastrichtian and Campanian intervals have demonstrated a significant net pay of 23.5 meters, as reported to the ministry. In order to thoroughly evaluate the potential, the release noted that CGX Energy is currently conducting comprehensive assessments specifically focused on the Santonian interval.
It said that preliminary investigations using wireline logs and core samples have revealed the presence of 64 meters of hydrocarbon-bearing sands within the Santonian interval.
“However, it is important to note that these findings are yet to be verified as no physical samples were obtained. To determine the net pay and establish a basis for evaluating this interval, an independent third-party laboratory will analyze the rock and fluid properties extracted from the Santonian core. This analysis is expected to take place over the next two to three months. The outcome of these evaluations will enable CGX Energy Inc. to ascertain whether the second discovery in the block holds potential for commercial interest”, the ministry said.
The ministry added that the recent discovery marks a significant milestone in offshore Guyana’s exploration endeavours, with a total of 45 findings since 2015, reaffirming the country’s hydrocarbon potential outside of the highly productive Stabroek Block.
On June 13, CGX Energy said it had reached a total depth of 20,450 feet on its Wei-1 bypass well in the Corentyne Block, Corentyne and will now undertake further examination of “encouraging” hydrocarbon deposits. A statement from the company said that the total depth on the original Wei-1 well was 19,142 feet.
The bypass was drilled from 18,757 feet to the total depth of 20,450 feet and penetrated the primary Santonian targets of the Well in the western complex in the northern portion of the Corentyne block.
Prior to the bypass, CGX Energy said that the Well encountered an aggregate of approximately 71 feet of net oil pay in the secondary target reservoirs in the Maastrichtian and Campanian.
Following the bypass, the company said that data collected from LWD (Logging While Drilling) and cuttings indicate multiple hydrocarbon shows in the primary target reservoirs in the Santonian interval.
“Results from the well are encouraging: data acquisition is ongoing via wireline logging, MDT’s (Modular Formation Dynamics Tester) and side wall core sampling”, the company said.
It added that an update on Well results will be provided when the acquisition and evaluation has been finalized.
Results from the Well are consistent with pre-drill expectations and have confirmed the Company’s geologic and geophysical assessment of the block, the CGX Energy statement said. As operations continue, the Joint Venture has also revised its total Wei-1BP1 (Wei-1 bypass) cost estimates to approximately US$190-$195 million to complete the logging runs, finish well operations, and release the rig. The additional costs are primarily due to the lost sampling tool and the drilling of the bypass well, the statement said.
The Well was drilled by CGX and Frontera Energy Corporation. CGX holds a 32.00% participating interest with Frontera holding the remaining 68.00% participating interest in the Corentyne block, offshore Guyana.
CGX has been scouting for oil here since 2000. While it has made some promising finds nothing has been commercialised.
