In narrowing their focus on the northern section of the Corentyne Block, the co-venturers have completed a farm-in agreement that increased Frontera Energy’s stake to 68% and decreased CGX Energy’s stake to 32%.
CGX announced the completion last Wednesday.
The farm-in deal secured funding for the Wei-1 well and cleared CGX’s debts. CGX remains the operator of the Corentyne Block.
Drilling at Wei-1 is ongoing and is expected to take 4-5 months.
CGX is also progressing construction on its Berbice Deep Water Port facility, which will serve as an offshore supply base for the oil and gas sector, and as a multi-purpose terminal to service agricultural import/export, containerised and specialised cargo, including aggregates for construction purposes.
CGX also announced that the partners have concluded the relinquishment of the Berbice and Demerara Blocks. Following the Kawa-1 discovery last year, CGX had indicated early on to the government that it would not be able to follow through with its commitments on the Demerara and Berbice Blocks. This was primarily due to budget constraints. The government and the co-venturers entered into mutual termination agreements.
Some of the relinquished acreage is on offer in the ongoing offshore licensing round, in the shallow area.