One-third of Frontera Energy’s 2023 capital expenditure budget will be spent on its operations in Guyana, said Chief Executive Officer (CEO) Orlando Cabreles.
Frontera’s CAPEX spend this year, Cabreles said, should fall between US$385 million and US$440 million.
“.. and one-third of it is coming here,” he said during his presentation at the International Energy Conference, on Wednesday.
“The company has a long-term vision. We are very focused not only on what we do but how we do it. And we are building on the strength that we have in our Guyana operations,” he added.
Frontera snags a modest US$13.5M net income in 2022 second quarter | OilNOW
Frontera has a 68% participating interest in the offshore Corentyne Block; CGX Energy, the operator, holds the remaining 32% interest.
Currently, both companies are focusing energies on spudding the Wei-1 well; drilling activities are currently ongoing there, utilising the Noble Discoverer.
CGX’s Wei-1 exploration drilling “going extremely well” – Dr. Narine | OilNOW
Frontera had said that the total cost of the Wei-1 well (including 2022 pre-drill costs and costs related to drilling delays) is forecast to be approximately US$160-$170 million.
It anticipates its share of this expense will be $120-$140 million, which it said will be funded from existing resources.
The Corentyne Block appears to be the best bet for Guyana’s first offshore development outside of the Stabroek Block. The costs associated with drilling the well are generally recoverable if the project moves to production.
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Chief Executive Officer (CEO) of Frontera Energy, Orlando Cabrales
