With new oil find, CGX Energy moves to drill another well later this year

CGX Energy, which has been searching for oil offshore Guyana for more than two decades, has finally found oil at the Kawa-1 well in the Corentyne Block and the company has announced that it will be drilling another well in the second half of 2022.

The company made this announcement in a press release issued on Monday night. The new well is called Wei-1 and it is located in the northwestern part of the Corentyne block, just north of the Kawa-1 well.

Spudding – which is the process of beginning to drill a well in the oil and gas industry – will commence sometime in the second half of 2022, the company stated.  Already, the company has been developing a deepwater port at the mouth of the Berbice River.

And, the company has been aiming to become a major hub for oil and gas business because of oil finds at nearby wells in Guyana and Suriname.

With its own oil finds, however, the company could focus on its own operations.

“If we are fortunate in our own well, a lot of our exploration programme would be staged from our own port.

“… and a success in our own well means an explosion of business in our own port,” Executive Chairman of CGX Energy Dr. Suresh Narine told the News Room in December.

The Wei-1 well, like the Kawa-1 will be developed by CGX Energy and Frontera Energy Corporation which is the majority shareholder of CGX and joint venture partner of CGX in the Corentyne block offshore Guyana.

According to the company’s press release, the Joint Venture has exercised its option to use the Maersk Discoverer semi-submersible mobile drilling rig for the Wei-1 well.

“This is an important step from a health and safety, efficiency, and operational perspective and will maintain both continuity in the exploration program during a period of high demand in the region and consistency in working with a team familiar with the rig,” the company said.