Oil discovery adds hope of new cluster unlocked offshore Guyana

Canadian operator CGX Energy has struck oil at a closely watched wildcat being drilled in Guyana, with expectations on the rise of a commercially viable discovery emerging outside the prolific Stabroek block.

US supermajor ExxonMobil has already unlocked about 11 billion barrels of oil equivalent in recoverable resources from Stabroek, but outside the tract only dusters or small hydrocarbons finds have been made.

CGX and project partner Frontera Energy hope to reverse that trend as the duo discovered 71 feet (22 metres) of net oil pay with the drilling of the Wei-1 exploration well in the Corentyne block.

The well was drilled by the Noble Corporation semi-submersible rig Noble Discoverer some 14 kilometres north-west of the Kawa-1 find on the same block.

Wei-1 reached total depth of 20,450 feet and discovered hydrocarbons at secondary targets in Maastrichtian and Campanian-aged reservoirs.

“Data collected from logging while drilling and cuttings indicate multiple hydrocarbons shows in the primary target reservoirs in the Santonian interval,” said CGX in a statement.

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The company has commenced testing of the primary target, adding results from Wei-1 are encouraging and consistent with pre-drill expectations.

CGX, which has been struggling financially, added the campaign is expected to cost between $190 million and $195 million.

The previous cost estimate for Wei-1 was calculated at a range from $175 million to $190 million.

CGX operates the Corentyne block with a 32% stake and is partnered by Frontera with the remaining 68%.