Frontera, CGX Energy say light oil, gas condensate found in Guyana

CGX Energy

09/05/2022 18:18

By Marianna Parraga
    HOUSTON, May 9 (Reuters) - A joint venture formed by
Canada-based firms CGX Energy  OYL.V  and Frontera Energy
 FEC.TO  on Monday said results from a well drilled in Guyana's
offshore Corentyne block showed the presence of light oil and
gas condensate.
    "The joint venture encountered hydrocarbons in multiple
zones," the companies said in a press release, following
completion of drilling activities at the Kawa-1 exploration well
and detailed studies by independent third-party laboratories.
    The companies did not say how much oil was found or whether
the finding could be commercial. 
    The joint venture is expected to be the next consortium in
moving oil exploration projects in Guyana to the development
phase if discoveries are declared commercial, after a group led
by Exxon Mobil  XOM.N  found about 11 billion barrels in
recoverable oil and gas resources and began output in 2019.
    Guyana's Natural Resources Minister Vickram Bharrat last
week said players at the Corentyne block will need a new
production sharing agreement (PSA) the government has started
drafting, which is expected to increase royalties and revamp
other terms contained in the Exxon-led consortium agreement.
 urn:newsml:reuters.com:*:nL2N2WY1JU
    Frontera and CGX Energy plan to drill a second exploration
well in the second half of the year at the Corentyne block, the
Wei-1 at a depth of 1,912 feet (582 meters) in the water. More
exploration and appraisal wells might be drilled before reaching
a final investment decision, executives from the firms said
during a presentation on Guyana.
    The companies also said they continue in talks with the
Guyanese government about another block in Guyana, Demerara,
where there is no drilling planning for this year even though
the prospective license to do so gives the companies until
February 2023 to drill a well. 
    CGX Energy is also building a deepwater port in Guyana's
Berbice region that is expected to service oil and gas
companies, commodities traders, container ships and cruise
lines.

 (Reporting by Marianna Parraga
Editing by Paul Simao)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))