CGX Energy delays drilling on Corentye block

CGX Energy Inc. has announced that it now has until 31 October 2015 to begin drilling for oil on its Corentyne block. The company also provided an operational update on all its exploration assets in Guyana.

Dewi Jones, CEO, commented: "We are very pleased with the progress of all our activities thus far in 2014. We continue to work towards drilling our next offshore exploration well in Guyana and are still optimistic that a joint venture partner will be secured prior to drilling."

Corentyne Block

CGX Energy received a five month extension to its spud date deadline at the Corentyne PPL. The government of Guyana granted approval of an extension on the spud date on the first commitment well from 31 May 2015 to 31 October 2015. The extension was required to ensure that the Hakuryu-12 rig will have sufficient time to arrive in Guyana prior to the commencement of the weather window.

Professor Suresh Narine, Co-Chairman of CGX Energy, commented: "The company deeply appreciates the co-operation of the government of Guyana in granting to CGX Energy the spud date extension. The procuring of the Hakuryu-12 drilling rig along with this extension significantly enables the company to address its work obligations under the Corentyne PPL with confidence.

“CGX Energy, being one of the long standing operators in the basin, is delighted to affirm its continued commitment to Guyana and to exploration of the Guyana-Suriname Basin. The company's current drilling obligations tangibly demonstrate this commitment, even as it is engaged in actively planning for the spudding of its next well within the Corentyne PPL within the revised timeframe."

Seismic surveys

Additionally, the reprocessing and merging of the existing seismic surveys at the Corentyne PPL is now complete. The company continues to have a technical data room available at its Houston offices and is working towards farming out a portion of the Corentyne PPL to a joint venture partner.

In addition to the completion of the seismic reprocessing of the Corentyne PPL, a full elastic seismic inversion and AVO (Amplitude Variation with Offset) has been completed and received from Vector Seismic Data Processing, Inc., which has contributed significantly to the risk assessment of the exploration prospects being considered for the next drilling campaign in the Corentyne PPL.

The results of the reprocessing have assisted in confirming and enhancing the geological assessment of the block. The company has made this information available in its data room and potential joint venture partners are in the process of reviewing the data. While these AVO analysis and results are subject to the uncertainties associated with geophysical/geological modelling, the company is encouraged by the results and remains optimistic about a potential discovery of hydrocarbons in the basin.

Conclusion

Jones concluded: "The company currently has a number of initiatives that it is rigorously working on as it begins to fulfil its commitments in all three of its PPLs. The company continues to believe in the potential of the basin and the discovery of hydrocarbons and also reaffirms its commitment to the successful completion of its work programs."

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23062014/cgx_energy_delays_drilling_on_block_offshore_guyana_888/