Frontera Energy Corporation and its cash-strapped partner, CGX Energy Inc., have reached a mutual agreement with the Government of Guyana to relinquish the Demerara and Berbice Blocks.
The partners had lobbied the government earlier this year for a chance to hold onto the highly prospective blocks due to low funds which were prioritized for drilling in the Corentyne Block. They were required to drill two wells in Demerara and one in Berbice before 2023.
Unable to honour these commitments Frontera and CGX said they have, in principle, reached an agreement with the Government to allow for the relinquishment of the blocks in a timely manner so that the people of Guyana can benefit from exploration activities under the stewardship of interested parties.
The attention of the Canadian partners will now be focused on the Corentyne Block which saw an oil discovery being made at the Kawa-1 well earlier this year.
Frontera said it will continue to integrate its findings from the Kawa-1 well into preparations for its second exploration well, called Wei-1, in the third quarter of 2022. The Wei-1 exploration well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana.
The Wei-1 exploration well will be drilled in water depth of approximately 1,912 feet (583 metres) to a targeted total depth of 20,500 (6,248 metres) and will target Maastrichtian, Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne block.
