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Joint venture (JV) partners CGX Energy Inc. and Frontera Energy Corporation have announced the discovery of a total of 114 feet (35 meters) of net pay at the Wei-1 well on the Corentyne block, approximately 124.3 miles (200 kilometers) offshore from Georgetown, Guyana.
The JV believes that the rock quality discovered in the Maastrichtian horizon in the Wei-1 well is analogous to that reported in the Liza Discovery on the Stabroek block. “Results further demonstrate the potential for a standalone shallow oil resource development across the Corentyne block”, the two companies said in a joint news release, adding that the JV has discovered total net pay of 342 feet (104 meters) to date on the Corentyne block to date.
The Wei-1 well was safely drilled by the NobleCorp Discoverer semi-submersible mobile drilling unit at a water depth of approximately 1,912 feet (583 meters) to a total depth of 20,450 feet (6,233 meters), according to the release. In the Maastrichtian section, Wei-1 test results confirmed 13 feet (4 meters) of net pay in a high-quality sandstone reservoir. Fluid samples retrieved from the Maastrichtian and log analysis confirmed the presence of sweet medium crude oil with a gas-oil ratio (GOR) of approximately 400 standard cubic feet per barrel, the JV noted.
In the Campanian section, petrophysical analysis confirmed 61 feet (19 meters) of net pay almost completely contained in one contiguous sand body with good porosity and moveable oil. The oil sampled during MDT testing as well as samples analyzed downhole confirm the presence of light crude oil. Further, in the Santonian section, petrophysical analysis confirmed 40 feet (12 meters) of net pay in blocky sands with indications of oil in core samples, the JV said.
Meanwhile, the current interpretation of the Campanian and Santonian horizons shows lower permeability than the high-quality Maastrichtian, and the JV said it believes “these horizons may offer additional upside potential in the future”.
The total costs for the Wei-1 well are now estimated to be between $185 million to $190 million following the successful implementation of several initiatives, the JV added.
“The proven presence of medium sweet crude oil in high-quality Maastrichtian cored reservoir at the Wei-1 well, combined with the previous discovery of 68 feet of hydrocarbon log pay in Maastrichtian blocky sands in the Kawa-1 well in 2022, has confirmed the significant potential of the Corentyne block”, Frontera Chairman and CGX Co-Chairman Gabriel de Alba said. “With the Joint Venture’s two-well drilling program now complete, and as a result of inbound expressions of interest from various global third parties, the Joint Venture is working with Houlihan Lokey to support a review of strategic options for the Corentyne block, including a potential farm down, as it progresses its efforts to maximize value from its potentially transformational investments in Guyana”.
“The independent lab results from the Wei-1 well are particularly encouraging for the Maastrichtian zone”, Frontera CEO Orlando Cabrales said. “Results indicate that the rock quality in the Maastrichtian at Wei-1 is analogous to that reported in the Liza discovery on [the] Stabroek block, further demonstrating the potential for a standalone shallow oil resource development across the entire Corentyne block. In addition, the Joint Venture believes that further potential upside exists in the Campanian, in which mobile light oil was proven in downhole analysis of samples, and the Santonian, which has log pay and remains a potential target for future developments. As is normal course following discoveries such as those made by the Joint Venture at Wei and Kawa, additional appraisal activities will be required to further assess commerciality and as input to optimize subsurface and production system development planning”.
Houlihan Lokey, a leading global investment bank and capital markets expert, is supporting the active pursuit of strategic options for the Corentyne block, including a potential farm down, the JV said.
Meanwhile, based on results from the Wei-1 and Kawa-1 wells, the JV retained SIA, a Subsea 7 – Schlumberger Joint Venture, to complete a conceptual field development plan for the northern portion of the Corentyne block including subsea architecture, development well planning, production and export facilities and other considerations. The JV said it believes that “a potential development of the Maastrichtian horizon may have lower associated development costs and be completed on a faster timeline than a broader development of both the shallow and deep zones on the entire Corentyne block”.
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.
Frontera is a Canadian public company involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The company has a diversified portfolio of assets with interests in 27 exploration and production blocks in Colombia, Ecuador, and Guyana, and pipeline and port facilities in Colombia.
To contact the author, email rocky.teodoro@rigzone.com
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