CGX to start drilling new well no later than January month-end

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CGX Energy, which has been searching for oil in Guyana for more than two decades, is expected to commence drilling at the offshore Wei-1 well no later than January 31, 2023.

This is according to a press release from CGX Energy and Frontera Energy, its joint venture partner in Guyana’s Corentyne Block. The release was issued on Monday and noted that this timeline was agreed to after engagements with the Government of Guyana.

In January, this year, it was announced that CGX finally struck oil in the Kawa-1 well in the Corentyne Block. With that success, the company said it would start spudding its second commitment, Wei-1, in the second half of 2022.

Spudding is the process of beginning to drill a well in the oil and gas industry. Already, the company has been developing a deepwater port at the mouth of the Berbice River.

See below full release:

Frontera Energy Corporation (TSX: FEC) (“Frontera“) and CGX Energy Inc. (TSXV: OYL) (“CGX“), joint venture partners (the “Joint Venture“) in the Petroleum Prospecting License for the Corentyne block offshore Guyana (the “License“), announce today its continued commitment to drill the Wei-1 well and that final preparations are complete in advance of spudding the Wei-1 well, which follows the discovery of light oil and gas condensate at the Kawa-1 well earlier this year.

The Wei-1 well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from GeorgetownGuyana and will be drilled in water depth of approximately 1,912 feet (583 metres) to an anticipated total depth of 20,500 feet (6,248 metres). The Wei-1 well will target Maastrichtian, Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne block.

As part of its preparations, the Joint Venture has agreed with the Government of Guyana that the Wei-1 well will be spudded no later than January 31, 2023, utilising NobleCorp’s (formerly Maersk) NobleCorp Discoverer semi-submersible mobile drilling unit, which timeline is in keeping with the schedule provided to CGX Resources Inc. by NobleCorp so as to allow for the NobleCorp Discoverer to complete its current obligations in Trinidad.

Under the terms of the License for the Corentyne block, the Joint Venture was previously required to spud Wei-1, the second of two commitment wells on the block, by November 27, 2022.

Orlando Cabrales, Chief Executive Officer of Frontera, commented:

“The Joint Venture remains firmly committed to drilling the Wei-1 well and we are grateful for the ongoing support from the Government of Guyana as we mutually work to unlock the potentially transformational opportunity before us at Corentyne. Significant investment, planning and work has been completed in preparation to drill Wei-1 and we are ready to drill the well upon rig arrival in one of the most exciting exploration areas in the world.”

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