CGX selects two leads in Corentyne Block for drilling programme

Aug 08, 2020 News

---

CGX Energy Inc., by way of its unaudited consolidated financial statements for the second quarter of 2020, disclosed that it has identified two key drilling leads in the Corentyne Block for its next drilling programme. In explaining the work that went into the selection of these two prospects, the company said that it had contracted PGS Geophysical AS (“PGS”) to provide acquisition and processing of a full broadband marine 3D seismic survey over a northern segment of the block.
The contract with PGS was executed under a Joint Operating Agreement (“JOA”) CGX has with Frontera Energy Guyana Corp. (“FEGC”).CGX said that the seismic acquisition was completed on November 2, 2019 and produced seismic data covering approximately 582 km2 of the northern portion of the Corentyne Block. It noted that PGS completed Time (PreStack Time Migration) and Depth (PreStack Depth Migration) processing of these data on June 5, 2020. Following this exercise, CGX Resources Inc. (CRI), the parent company of CGX Energy, said it completed a preliminary evaluation of the recently processed 3D seismic data, and has identified two potentially highly prospective large channel sand reservoir complexes. The oil exploration company said that these channel complexes are interpreted to contain multiple high potential leads located in the northern region of the Corentyne Block, which is located in proximity to the Stabroek Block offshore Guyana and Block 58 offshore Suriname.
Expounding in this regard, CGX said that the Pluma and Haimara discoveries in the Stabroek Block are located approximately two and eight miles, respectively from the border of the northern region of the Corentyne Block while the Maka Central, Kwakwasi-1 and Sapakara West discoveries in Block 58 are located approximately seven, 15 and 20 miles, respectively from the border of the northern region of the Corentyne Block. The company noted that the leads mapped in the northern Corentyne Block are interpreted to be situated at the same geological horizons as the nearby significant discoveries already proven in the Stabroek Block and Block 58. Also, importantly, the company said that the northern Corentyne leads are interpreted to share the same proven hydrocarbon generating basin and intervals in which the current discoveries are located.
Kaieteur News understands that these leads are primarily stratigraphic traps composed of sandstone accumulations and deemed to be analogous to many of the discoveries already proven to be successful in the Guyana basin. In its financial statements as well, CGX said that the northern Corentyne leads are in the process of being high-graded and have been mapped within the Upper Cretaceous, Santonian and Miocene intervals. It said too that they are currently undergoing further analysis in order to prioritize and rank the best prospect to be drilled.
It was noted too that the leads are located in water depths ranging from approximately 500 to 3,600 feet and are estimated to be at a drilling depth of between approximately 11,000 to 21,700 feet. CGX was keen to note that the current high-graded lead identified in the northern region of the Corentyne Block has been named Kawa, after the iconic Kawa Mountain, which overlooks the village of Paramakatoi in the Pakaraima Mountains of Guyana. It is a Santonian level, stratigraphic trap and as previously mentioned, is interpreted to be analogous to the discoveries immediately to the east in Block 58 in Suriname. Additional leads are being evaluated by the company. In the meantime, the company stated that Baker Hughes was recently contracted to provide a pore pressure analysis of the Kawa prospect, which will be completed in August 2020.
On the Demerara Block, Kaieteur News understands that CRI will begin re-processing the existing seismic data at the end of the third quarter for 2020 in order to mature previously mapped leads into prospects ready for drilling.
Turning its attention to the impact of the COVID-19 pandemic, CGX noted that it has continued with its plan to protect the health and safety of its employees and all stakeholders. The company said that its alternative working arrangements for employees to work from home in Canada, Guyana and the USA are still in place. As for its operational activities, it said that these are still affected due to restrictions on travel for key personnel related to operational planning, especially into and out of Guyana. CGX, which has reiterated its commitment to the resumption of operations as soon as possible, also stated that it has been engaged in constructive collaborative discussions with the regulatory authorities in Guyana about the timing of its work commitments in light of COVID-19 restrictions.

---

---