CGX Energy Inc. and its joint-venture partner Frontera Energy Corporation announced today, the results of an independent Prospective Resource study and report in respect of the Corentyne North Area, Corentyne Main Area and Demerara Block, offshore Guyana.
The study which was done by McDaniel and Associates Consultants Ltd., an independent qualified reserves evaluator, on September 10, found a total of 32 prospects in both blocks (5 in the Demerara block and 27 in the Corentyne block) with a mean volume of 4,940 million barrels of oil equivalent resources (unrisked) and 884 million barrels of oil equivalent resources (risked).
Further to this, CGX disclosed that it was able to secure the successful renegotiation of its work commitments with respect to its Petroleum Prospecting License for the Demerara and Berbice block onshore Guyana. The company noted that negotiations regarding the rescheduling of its work commitments for the Demerara block were successful to the extent that it now has a one year extension to drill its first well. CGX specifically noted that it has up to February 11, 2022 to drill its Makarapan-1 exploration well.
CGX also stated that its Berbice prospecting licence work plan will be modified from completing a seismic programme and all associated processing and interpretation by August 12, 2021 to June 15, 2022, subject to documentation. Following this, an exploration well will be identified. The Berbice licence is held by ON Energy Inc. CGX Energy has a 62% ownership interest in ON Energy Inc.
In the meantime, the partners are preparing to drill the Kawa-1 exploration well on the Corentyne Block before the end of the second half of 2021.
