Canadian exploration companies, CGX Energy Inc. and Frontera Energy announced on Friday, the discovery of 114 ft (35 m) of net oil pay in the Wei-1 well situated in the Corentyne Block offshore Guyana. The well, drilled by the Noble Corp Discoverer, 14 km northwest of the Kawa-1 discovery in 1,912 ft (583 m) of water, marks a noteworthy development in the region.
The partners expressed confidence in the rock quality of the Maastrichtian horizon in Wei-1, drawing comparisons to the Liza Field on the Stabroek. The results bolster the potential for a standalone shallow oil resource development across the Corentyne Block.
Targeting Maastrichtian, Campanian, and Santonian stacked sands within channel and fan complexes, Wei-1’s data acquisition programme included wireline logging, MDT fluid samples, and sidewall coring. Fluid samples from the Maastrichtian confirmed sweet medium crude with a gas-oil ratio (GOR) of 400 cf/bbl. Campanian testing revealed light crude, while Santonian analysis indicated oil in core samples, suggesting additional upside potential in both horizons.
The companies said the total costs associated with the Wei-1 well are estimated to be in the range of US$185 million to US$190 million. Building on the successes of Wei-1 and Kawa-1 wells, the partners have engaged the SIA (Subsea 7 – Schlumberger) JV to develop a conceptual field development plan for the northern portion of the block.
While further appraisal activities are necessary to determine commercial viability, CGX and Frontera said initial signs suggest a potential development of the Maastrichtian horizon could be more cost-effective and quicker than a broader development of the shallow and deep zones across the block.
Additionally, the joint venture partners said Houlihan Lokey, a global investment bank, is actively supporting strategic options for the Corentyne Block, including the possibility of a farm down.
In brief remarks, Executive Co-chairman of CGX’s Board of Directors, Professor Suresh Narine highlighted the wealth of data from Wei-1, emphasizing its incorporation into geological and geophysical models for a comprehensive evaluation of Kawa and the potential in the Maastrichtian, along with other undrilled prospects in the region.