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A vessel designated to transport crude oil traverses the waters offshore Guyana (File photo)

Frontera, CGX ‘advance’ plans to drill offshore Guyana

A vessel designated to transport crude oil traverses the waters offshore Guyana (File photo)

Canadian oil exploration and production (E&P) company Frontera has revealed plans to drill two blocks offshore Guyana as part of its 2021 programme.

In a statement accompanying results for 2020, the company stated: “In Guyana, the company, through its joint venture with CGX Energy Inc, continued to advance its exploration programme in the fourth quarter in both the Corentyne and Demerara blocks…”

The map shows the various oil- and gas-producing blocks in the Guyana-Suriname basin. (Photo: Frontera)

So far, the company has completed the well design in the Corentyne block, with plans to proceed on the Kawa-1 well. Procurement of long lead items is now in advanced stages and Frontera has recruited key technical staff for the project.

“The joint venture plans to spud the Kawa-1 exploration well during the second half of this year,” the Canadian E&P outfit said.

At the same time, the joint venture has continued to advance its preparatory work for the Makarapan-1 exploration well in the Demerara block. In addition, the Frontera-CGX has extended the drilling deadline from February 12, 2021 to February 11, 2022.

“The joint venture plans to spud the Kawa-1 exploration well during the second half of this year”

Positive signs

Just last month Frontera, along with its partner CGX Energy Inc, revealed the details of an independent prospective resource study and report on the Corentyne North Area, Corentyne Main Area and Demerara block.

The work of McDaniel & Associates Consultants Ltd, the study and report identified 32 prospective wells — 27 in the Corentyne block and 5 in the Demerara block.

Moreover, it concluded that the chance of discovery is between 18 per cent and 51 per cent, and the chance of development between 50 per cent and 70 per cent, based on an evaluation of the risks relevant to the blocks.

 “As confirmed by the independent resource evaluation commissioned, the Guyana basin offers the joint venture access to a leading offshore oil opportunity. We expect a robust Guyana work programme with the advancement of our exploration wells, as we continue executing on our plan to realise this value for our shareholders,” Gabriel De Alba, chairman of the board of directors, Frontera, noted.