Canada's CGX Energy reports oil and gas discovery off Guyana coast

CGX Energy

01/02/2022 24:08

Jan 31 (Reuters) - Canada's CGX Energy  OYL.V  on Monday
reaffirmed it and parent Frontera Energy  FEC.TO  discovered an
oil and gas reservoir off the coast of Guyana and said drilling
on a second well could begin later this year. 
    Its Kawa-1 well found approximately 177 feet (54 meters) of
hydrocarbon-bearing reservoirs based on an initial evaluation of
logging data, the company said. It did not disclose the size of
the potential find. 
    "We are very pleased to have successfully drilled the Kawa-1
well with our partner CGX, said Orlando Cabrales, Frontera's
CEO. Frontera is the majority shareholder of CGX and its joint
venture partner in the exploration of Corentyne block, offshore
Guyana.
    Last month, CGX said the Kawa-1 results suggested the
presence of oil and gas, but warned it may be required to seek
additional financing to continue drilling. Costs associated with
the well had risen to between $115 million and $125 million, it
said.
    Final well cost estimates and additional results of the
discovery will be disclosed in the future, the company said. 
    Guyana produces about 120,000 barrels per day of crude from
an offshore project controlled by a consortium that includes
Exxon Mobil, Hess Corp and China’s CNOOC Ltd.

 (Reporting by Gary McWilliams; Editing by Aurora Ellis)
 ((Gary.McWilliams@thomsonreuters.com; +1 469-691-7668;))