CGX Energy said on Wednesday drilling operations at the Wei-1 well offshore Guyana has encountered multiple oil-bearing intervals in the western channel fan complex of the northern portion of the Corentyne Block. The intervals, CGX said, are in formations of Maastrichtian and Campanian ages.
“A comprehensive logging campaign in the Maastrichtian interval indicated the presence of medium sweet crude oil of 24.9 API,” CGX said. “Downhole fluid analysis confirmed light sweet crude oil in the Campanian interval. Logging while drilling (LWD) and cuttings indicated the presence of hydrocarbons in the upper portion of the Santonian; fluid samples have not yet been obtained.”
The well, planned to be drilled to a total depth of 20,500 feet, to date has been successfully drilled to a depth of 19,142 feet.
CGX said operations were interrupted when a wireline fluid sampling tool became stuck in the well and was not recovered. “An open hole sidetrack will begin shortly from below the last casing point and will progress to the planned total depth,” CGX stated.
The JV Partners expect the Well to be completed within the original timeframe announced on January 23, 2023, of 4 to 5 months after spudding the well.
CGX said core samples will be attempted in the Santonian interval when drilling resumes. The company, however, noted that it is not yet certain that the hydrocarbons encountered to date in the well are yet sufficient to underpin commercial development on the Northern portion of the Corentyne block.
As drilling operations continue, the Joint Venture has revised its well total cost estimates to approximately $175-$185 million to successfully reach the target total depth, complete the anticipated logging runs and complete the well.
“The increase in cost includes the delays associated with the late release of the rig by a third-party and adjusting the spud date to January 2023, and costs associated with fishing and sidetrack operations,” CGX said. The company is required to fund its 32% interest, after partner carry, of approximately $11 to $15 million and is currently assessing strategies to fulfill this obligation.
Wei-1 is located 14 kilometers west of the Kawa-1 discovery well announced by the JV Partners last year.
CGX holds a 32% participating interest with Frontera holding the remaining 68% participating interest in the Corentyne block.