CGX Energy announces that the Kawa-1 exploration well off Guyana has exercised a spud and an option with Maersk to drill a second well
CGX ENERGY INC.
(TSX-V | OYL) August 23, 2021
THE KAWA-1 EXPLORATION WELL OFF THE GUIANA IN SPUD
KAWA-1 SHOULD REACH FULL DEPTH IN THE FIRST HALF OF
OPTION EXERCISED WITH MAERSK TO DRILL A SECOND WELL
Toronto, Canada, August 23, 2021 – CGX Energy Inc (“CGX“or the Society“), announced today the drilling of the Kawa-1 exploration well, off Guyana. CGX and Frontera Energy Corporation (“Frontera“) (TSX: FEC), the majority shareholder of CGX, and its joint venture partner (collectively, the”Joint venture“) in the Demerara and Corentyne blocks, also separately announced an update on the Kawa-1 well spud. In addition, the joint venture exercised its option to drill a second well with Maersk Drilling Holdings Singapore Pte (“Maersk“) through the use of Maersk Discoverer.
Gabriel de Alba, Co-Chairman of the Board of CGX and Chairman of the Board of Frontera said:
“Today is an important day for CGX and Frontera as we continue to make substantial progress in realizing the value of our investments in Guyana. The joint venture dug the Kawa-1 well, which we believe is one of the most exploration wells the joint venture has also exercised its option to drill a second well off Guyana under similar conditions. our other diverse partners as we work together to maximize benefits for all of our stakeholders. ”
On August 22, 2021, the Kawa-1 well spouted. The joint venture expects the Kawa-1 well to reach full depth during the first half of December 2021. The Maersk Discoverer, which is on station, is pictured below.
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The Kawa-1 well is located in the northeast quadrant of the Corentyne Block, approximately 200 kilometers off Georgetown. The water depth is approximately 355 meters (1,174 feet) and the total expected depth of the Kawa-1 well is 6,685 meters (21,932 feet).
With multiple opportunities based on internal geological studies, the Kawa-1 well targets light oil in combined structural-stratigraphic traps in large complexes of Santonian and Campanian slope cones. The main target is Santonian sand with an upward dip and lateral reservoir dip, as well as counter-regional dip and structural closure. The Kawa-1 well is also expected to penetrate secondary targets in shallower Campanian sand and deeper Santonian sand in the hope of targeting additional hydrocarbon potential. The targets stacked in Kawa-1 are believed to be analogous to the findings immediately adjacent to the Corentyne block, in block 58 in Suriname.
Additionally, the Kawa-1 well is expected to reduce the risk of several other prospects on the block that also have stacked tanks and similar structural geometries. The proximity of the Corentyne block to the source of Cretaceous sediment in the Berbice Canyon is interpreted to have sandstone reservoirs concentrated in the North Corentyne region. Internal channeled and stacked fan geometries evident on the 3D seismic indicate thick, stacked, and coarser-grained sand reservoirs.
The joint venture has assembled a highly skilled and experienced team for the drilling campaign, with extensive deepwater drilling expertise from operations around the world, including the Guyana Basin, which includes:
- Kevin Lacy (41 years of experience at Chevron, BP, Talisman – former Global Drilling Manager at Chevron and Talisman) as Director of Drilling;
- Todd Durkee (33 years of experience at Anadarko and Kerr McGee – former Vice President of Deepwater Drilling at Anadarko) as Senior Drilling Advisor;
- Juan Pinzon (29 years of experience at BP, BHP, Occidental, Nabors and Schlumberger) as drilling director for Frontera;
- Karlin Costa (40 years of experience with Noble, Cobalt, BP and ConocoPhillips – former Director of Offshore Wells – Noble) as Senior Drilling Superintendent;
- Jonathan Shipley (35 years experience with Apache, Devon, ConocoPhillips – previous role of DW Superintendent of Operations with Apache in Suriname) as Senior Drilling Superintendent;
- Rick Ysa (over 30 years of experience with Repsol, Chevron, Devon, Kerr McGee – previous role of Drill Project Manager for the Americas with Repsol) as Senior Drill Engineer;
- Marcus Summers (30 years experience with ExxonMobil, Noble, Amoco – previous role Senior DW Engineer, ExxonMobil) as Senior Drill Engineer;
- Brad Koskowich (over 30 years of experience at Repsol, Nexen, CNR, Suncor) as Senior Health, Safety and Environment Advisor;
- Regan Palsgrove (over 30 years of experience in several basins in North and South America, including at Talisman Energy) as exploration manager for Frontera;
- Duncan Nightingale (over 30 years of global experience including with Gran Tierra Energy – previous position as Interim CEO) as Corporate Vice President, Field Development, Reservoir Management and exploration for Frontera;
- Michael Stockinger (over 40 years of experience including Anadarko Petroleum, Kerr-McGee and ConocoPhillips) as vice president of operations for CGX;
- Jennifer Budlong (over 20 years of experience in national and international basins around the world including Shell, BHP, Maersk Oil and Venari Resources) as exploration manager for CGX.
Joint venture exercise option with Maersk
As part of the agreement (the “Drilling contract“) previously announced on April 22, 2021 between CGX Resources Inc. and Maersk, CGX exercised its contractual right to use the Maersk Discoverer to drill an additional well. The decision of the joint venture to exercise the option is an important step in maintain continuity of the exploration program during a period of high demand in the region and consistency in working with a team familiar with the platform – important from the point of view of health and safety, efficiency and operations, to be decided over the next few months to capitalize on the joint venture’s rich set of exploration opportunities.
CGX is a Canadian oil and gas exploration company focused on oil exploration in the Guyana-Suriname basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATORY SERVICES PROVIDER (AS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS COMMUNICATION.
This press release contains forward-looking statements. All statements, other than statements of historical fact, that deal with activities, events or developments that CGX believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the exploration and development plans and objectives with respect to the Kawa -1 well, including the drilling plans, and the development of the BDWP and its future use) are forward-looking statements. . These forward-looking statements reflect CGX’s current expectations or beliefs, as the case may be, based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties which may cause actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that ‘they will have the expected consequences or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: the need to obtain any required regulatory approvals; the ability of the joint venture to successfully explore and develop the offshore blocks, and to finance such exploration and development and the impact thereof of unforeseen costs and expenses; changes in equity and debt markets; perceptions of the outlook and outlook for the oil and gas industry in countries where the Company operates or has investments; and other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s Annual Information Form dated May 5, 2021 filed on SEDAR at www.sedar.com. Any forward-looking statement is only valid as of the date on which it is made and, except as required by applicable securities laws, CGX disclaims any intention or obligation to update any forward-looking statement, whether at as a result of new information, events or future or other results. Although CGX believes that the assumptions inherent in the forward-looking statements applicable to it are reasonable, forward-looking statements are not guarantees of future performance and, therefore, one should not place undue reliance on such statements due to the uncertainty. inherent in these.
For more information, please contact: Tralisa Maraj, Chief Financial Officer at (832) 300-3200.
CGX Energy Inc. published this content on 23 Aug 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 23 Aug 2021 07:43:08 PM UTC.
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