- No word on commerciality
- Drilling costs revised upward again
After completing the drilling of the Wei-1 well offshore Guyana, CGX Energy Inc. on Tuesday announced a discovery of 71 feet of net oil pay. The CGX exploration campaigns in recent years have been the most promising for a development outside of Stabroek Block but so far, there has been no sign of movement in this direction.
The company has made no pronouncement on the commerciality of the oil find, though it said results from the well are consistent with pre-drill expectations. It expects to provide an update when data acquisition and evaluation are finalised.
“The Well has confirmed the Company’s geologic and geophysical assessment of the block,” CGX said.
The company successfully reached total depth (TD) of 20,450 feet on the Wei-1 bypass exploration and appraisal well (Wei-1BP1). The well was drilled in the northern area of the Corentyne Block offshore Guyana.
The original Wei-1 wellbore reached a depth of 19,142 feet. A bypass well (Wei-1BP1) was drilled from 18,757 feet to total depth (TD) 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, the Well encountered an aggregate of approximately 71 feet of net oil pay in the secondary target reservoirs in the Maastrichtian and Campanian, the company said.
Following the bypass, data collected from LWD (Logging While Drilling) and cuttings indicate multiple hydrocarbon shows in the primary target reservoirs in the Santonian interval. CGX said results from the well are encouraging, and that data acquisition is ongoing via wireline logging, MDT’s (modular formation dynamics testing) and side wall core sampling.
The last time CGX gave an interim update on drilling at this well, it had revised drilling costs from an estimate of US$160 million to a range of US$175 million – US$190 million. This has now been revised further upward to approximately $190-$195 million to complete the logging runs, finish well operations, and release the rig. The company said the additional costs are primarily due to the loss of a sampling tool and the drilling of the bypass well.
CGX holds a 32% participating interest in the Corentyne block with Frontera holding the remaining 68% participating interest.