Saturday, January 28, 2023

Westwood says CGX’s Wei-1 is a ‘large, high-impact’ prospect

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London-based energy intelligence firm, Westwood Global Energy, called Wei-1 a ‘large, high-impact’ prospect and a ‘key well to watch’ ahead of expected exploration drilling offshore Guyana in October by CGX Energy Inc.

“Final preparations are underway in advance of spudding the Joint Venture’s second exploration well, Wei-1, in October 2022, subject to rig release from a third-party operator,” CGX said in its second quarter earnings report.

Drilling will be done by the Maersk Discoverer.

Following updated results on the Kawa-1 well, that noted the discovery of light oil and gas condensate, the partners had said that chances of success at Wei-1 nearly doubled from 29% to 56%.

The Wei-1 exploration well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown. The Wei-1 exploration well will be drilled in water depth of approximately 1,912 feet (583 metres) to an anticipated total depth of 20,500 (6,248 metres) and will target Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne block.

CGX and its Corentyne Block joint venture partner, Frontera Energy Corp. had pushed back the expected drilling date from the third to the fourth quarter, while announcing a deal they made for Frontera to farm into the license.

The agreement allowed the partners to secure funds for the drilling of Wei-1 and other works associated with the Corentyne Block. The partners await the regulatory finalisation of this deal, to increase Frontera’s stake from 33.33% to 68%. This would result in a decrease of CGX’s stake from 66.67% to 32%. No change of operatorship was announced.

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