Canada's CGX Energy to focus on Corentyne block instead of Demerara in Guyana

CGX Energy

14/02/2022 15:52

Feb 14 (Reuters) - Canada's CGX Energy  OYL.V  said on
Monday its joint venture with Frontera Energy  FEC.TO  would
focus on their Corentyne block, offshore Guyana, and had no
plans of drilling in the Demerara block this year.
    The companies announced their discovery of an oil and gas
reservoir off the coast of Guyana last month, with the Kawa-1
well in the Corentyne block finding about 177 feet (54 meters)
of hydrocarbon-bearing reservoirs.  urn:newsml:reuters.com:*:nL1N2UB34Z
    In December, CGX warned it might be required to seek
additional financing to continue drilling the well. Costs
associated with the well have risen to between $115 million and
$125 million. 
     Frontera is the majority shareholder of CGX and its joint
venture partner in the exploration of the Corentyne block.
     The companies said they were currently in talks with Guyana
regarding the Demerara block, which is located to the west of
the prolific Stabroek block, operated by ExxonMobil  XOM.N  with
partners Hess  HES.N  and CNOOC International  0883.HK .
    Guyana has been the scene of the world's biggest offshore
discoveries in years, with 10 billion barrels of recoverable oil
and gas confirmed since it began production in 2019.    
    

 (Reporting by Rithika Krishna and Nishara Karuvalli Pathikkal
in Bengaluru; Editing by Anil D'Silva)
 ((Rithika.Krishna@thomsonreuters.com; Twitter: https://twitter.com/rithika_krishna;))