CGX Energy to Invest $90 Million in Offshore Drilling in Guyana

In the second half of 2021, CGX Energy, a Canadian oil and gas company focusing on Guyana, plans to spud an exploration well in its Corentyne block.

The Kawa-1 exploration is scheduled to be drilled to a depth of approximately 6,500 metres (“m”) in a water depth of approximately 370 metres, according to a recent report from CGX Energy. “It is slated to be drilled in the second half of 2021,” the company said.

The primary goal is a Santonian era stratigraphic pit, which is thought to be similar to the discoveries made immediately to the east on Suriname’s Block 58. The prospect is named after an iconic mountain in Guyana’s Pakaraima Mountains that overlooks the village of Paramakatoi.

Another well, the Makarapan-1 exploration well on the Demerara block, is scheduled to be drilled to a total depth of approximately 3,500 metres in 1,000 metres of water, according to CGX.

The primary goal is a sandstone reservoir from the Aptian period. The prospect is named after a Precambrian mountain that towers over Guyana’s Rupununi Savannahs. This well is not supposed to be spudded anytime soon, according to CGX.

“The Company estimates the overall cost of the Guyana exploration programme in 2021 to be approximately $90 million, based on currently available details,” the company said.