CGX Energy and partner Frontera plugged just over US$50 million dollars more into the exploration campaign conducted at the Kawa-1 well on the Corentyne Block, than was initially estimated. The partners said on Wednesday that the final cost of the Kawa-1 exploration well was $141 million.
CGX had said last year prior to spudding the well that the estimated cost to drill and evaluate the prospect is pegged between US$80-$85 million.
The well was drilled by the Maersk Discoverer, a sixth-generation semi-submersible rig.
After more than 20 years of seismic data acquisition and drilling, CGX announced on January 31 that it had finally landed its first oil discovery in Guyana at Kawa-1.
The well was drilled to a total depth of 21,578 feet (6,577 metres) in the northern section of the Corentyne block. CGX said drilling results confirm the presence of an active hydrocarbon system and successful wireline logging runs confirmed net pay of approximately 200 feet (61 metres) within Maastrichtian, Campanian, Santonian and Coniacian horizons.
CGX said no MDT data or sidewall core samples were retrieved and the joint venture partners have engaged an independent third-party to complete further detailed studies and laboratory analysis on drilling cuttings from the Santonian, Campanian and Maastrichtian intervals and well-bore fluid samples to evaluate in situ hydrocarbons.
The company pointed out that the Kawa-1 well results have improved the Joint Venture’s understanding of the operational and geological complexities of the basin and will help reduce the technical risks of the Wei-1 exploration well, the next prospect to be targeted on the Corentyne Block.
