Canadian exploration and production (E&P) outfit CGX Energy Inc is moving forward with plans to drill the Kawa-1 well in the Corentyne block offshore Guyana after securing the dilling services of Maersk Discoverer vessel.
Last week, the company announced that it had entered into an agreement with Maersk Drilling Holdings Singapore Ltd on Wednesday, April 21, as part of preparations to spud the Kawa-1 well in the third quarter of this year.
“We have exciting exploration plans for the Kawa-1 and Makarapan-1 wells on the Corentyne and Demerara Blocks…”— Professor Suresh Narine, executive co-chairman, CGX Energy Inc
“The primary target for the Kawa -1 well is a Santonian age, stratigraphic trap, interpreted to be analogous to the discoveries immediately to the east on Block 58 in Suriname. The Kawa-1 well is anticipated to be drilled to a total depth of approximately 6,500 metres in a water depth of approximately 370 metres,” a release from CGX outlined.
While CGX did not indicate the cost of the contract, its E&P partner, Frontera Energy Corporation, plans to enter into a different agreement with Maersk Drilling that will see the joint venture doling out a maximum CN$25 million.
Just less than a week before, both CGX and Frontera disclosed they had secured a CN$19-million that would finance their joint venture operations in the Corentyne, Demerara, and Berbice blocks offshore Guyana.
Given the scope of the companies’ operations, Maersk Discoverer will provide drilling services for up to 125 days — 85 days in Corentyne block and another 40 days in the Demerara block.
“These are exciting times for CGX, the joint venture and our stakeholders as we get closer to spudding Kawa-1,” Professor Suresh Narine, executive co-chairman of CGX, said.
“We have exciting exploration plans for the Kawa-1 and Makarapan-1 wells on the Corentyne and Demerara Blocks and, as importantly, we are developing the infrastructure necessary to support and enhance broader energy and trade industry activity through the Berbice Deepwater Port Project. We look forward to executing on our programmes and creating value and opportunity for our stakeholders,” he added.
Orlando Cabrales, chief executive officer of Frontera, also underscored that “Our joint venture with CGX represents a significant growth opportunity for both companies… Completing the loan agreement with CGX is an important step forward and the Joint Venture remains firmly on-track to spud its first offshore Guyana well as planned in the second half of this year.”