Guyana’s Maritime Administration Department said in a notice dated December 24 that CGX Energy is moving forward with demobilization of exploration drilling operations at the Corentyne Block where it is hoping to hit pay at the Kawa-1 prospect.
The demobilization area is situated approximately 90 nautical miles (167 kilometers) offshore Guyana and covers an area of 4.7 square nautical miles (16.25 square kilometre.
CGX and joint venture partner Frontera Energy Corporation said just over a week ago that the drill campaign is taking longer than originally forecast and costs are therefore projected to increase. It was originally reported to cost approximately US$80M. But the current cost estimate of the Kawa-1 well is now pegged at approximately US$115-$125 million.
The partners said they will provide an update on the exact costs and will issue full exploration results of the Kawa-1 well once total depth has been reached and results have been analyzed. The partners also said that approximately 90% of the planned footage has been drilled and the initial results suggest an active hydrocarbon system is present at the Kawa-1 location.
The Maersk Discoverer began drilling the Kawa-1 well in August. The well is expected to be drilled to a total depth of approximately 6,500 meters in a water depth of around 370 meters.