CGX eyes oil in commercial reserves at well offshore Guyana

Last Updated on Tuesday, 13 June 2023, 22:03 by Written By Denis Chabrol

The Canadian oil exploration company, CGX Energy, on Tuesday signaled that it appeared on the verge of finding crude oil in commercial quantities at the Wei-1 exploration and appraisal well offshore Guyana.

“Results from the well are encouraging: data acquisition is ongoing via wireline logging, MDT’s and side wall core sampling,” the company said in a statement.

An update on Well results will be provided when the acquisition and evaluation has been finalized.

CGX said the results from the well are consistent with pre-drill expectations, adding that the well has confirmed the Company’s geologic and geophysical assessment of the block.

According to the company, they have successfully reached total depth of 20,450’ on the Wei-1BP1 . The original Wei-1 wellbore reached a depth of 19,142’. A bypass well (Wei-1BP1) was drilled from 18,757’ to total depth (TD) and penetrated the primary Santonian targets of the Well in the western complex in the northern portion of the Corentyne block. the company said.

Prior to the bypass, CGX said the well encountered an aggregate of approximately 71 feet of net oil pay in the secondary target reservoirs in the Maastrichtian and Campanian.

Following the bypass, the company said data collected from Logging While Drilling and cuttings indicate multiple hydrocarbon shows in the primary target reservoirs in the Santonian interval.

As operations continue, the Joint Venture has revised its total Wei-1BP1 cost estimates to approximately $190-$195 million to complete the logging runs, finish well operations, and release the rig. The additional costs are primarily due to the lost sampling tool and the drilling of the
bypass well.

The Well was drilled by CGX and Frontera Energy Corporation. CGX holds a 32.00% participating interest with Frontera holding the remaining 68.00% participating interest in the Corentyne block, offshore Guyana.

CGX is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana.