More oil finds possible as Canadian companies eye new exploration area

By Vishani Ragobeer

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Canadian companies CGX Energy and Frontera have said that the results from the Kawa-1 well, drilled last year in the Corentyne Block offshore Guyana, strengthen their confidence in more oil and gas reserves, particularly in a newly-eyed central complex.

The two companies are part of a joint venture searching for oil offshore Guyana. Last year, hydrocarbon presence (oil reserves) was found at the Kawa-1 exploration well.

Since Kawa – 1 was the first exploration well drilled, the companies have been able to collect and analyse data that aids their understanding of the wider Corentyne Block.

With these Kawa-1 well results, the Head of Exploration at Frontera Energy Regan Palsgrove explained that there is a “better understanding” of the geology of the block. And importantly, she noted that the joint venture has identified “abundant additional potential” including in the area between Kawa-1 and the forthcoming Wei-1 well.

That in-between area is referred to as the central complex.

“We’re mapping this central area in more detail as we speak but we feel confident that this will offer more exploration drilling opportunities and more exploration opportunities,” Palsgrove said during a technical presentation on Monday.

Ahead of potential exploration in this area, however, the joint venture will drill its second exploration well at Wei- 1 in the third quarter of 2022, as previously announced.

Kevin Lacy, the CGX Energy’s drilling director, explained that the companies will be able to improve the well design at Wei-1, given their experience at Kawa-1. And both Lacy and Palsgrove emphasised that the Kawa-1 well, and the confirmed presence of oil and gas reserved there, has de-risked further exploration in the block.

Because exploration has recently commenced in the area, more mapping, further exploration wells and later, appraisal wells are needed to determine commercial activity in the block.

KAWA-1 RESULTS

Meanwhile, the joint venture announced on Monday that light oil and gas condensate was discovered at the Kawa-1 well. The results of the drilling done at this well were released via press release.

Based on independent third-party laboratories and experts to complete detailed studies, refined mapping and analyses to provide opinions on reservoir quality and hydrocarbon type.

And it was noted that these findings are consistent with discovery wells reported by other operators surrounding the northern portion of the Corentyne block, thereby de-risking upcoming exploration.

“The Kawa-1 discovery adds to the growing success story unfolding offshore Guyana and the integrated Kawa-1 well results further support our belief in the potentially transformational opportunity the Joint Venture has in one of the most exciting basins in the world,” Gabriel de Alba, Chairman of Frontera’s Board of Directors and Co-Chairman of CGX’s Board of Director was quoted as saying in the press release.