CGX Energy Inc. announced this morning that it successfully reached 71 feet of net pay oil at the Wei-1 well. “Net Pay” is defined as the thickness of the rock that contributes to economically viable production with today’s technology, prices, and costs.
In a statement to the market, CGX said it reached total depth of 20,450′ on the Wei-1 bypass exploration and appraisal well with the original Wei-1 wellbore reaching a depth of 19,142′.
Guyana Standard understands that a bypass well (Wei-1BP1) was drilled from 18,757′ to total depth (TD) and penetrated the primary Santonian targets of the well in the western complex in the northern portion of the Corentyne block.
Prior to the bypass, the well encountered an aggregate of approximately 71 feet of net oil pay in the secondary target reservoirs in the Maastrichtian and Campanian.
Following the bypass, data collected from LWD (Logging While Drilling) and cuttings indicated multiple hydrocarbon shows in the primary target reservoirs in the Santonian interval.
CGX said the results from the well are encouraging since data acquisition is ongoing via wireline logging and side wall core sampling. CGX also said an update on well results will be provided when the acquisition and evaluation has been finalized.
It also noted that results from the well are consistent with pre-drill expectations while also confirming the company’s geologic and geophysical assessment of the block.
As operations continue, CGX and its partner, Frontera Energy Corporation have revised its total Wei-1BP1 cost estimates to approximately US$190-US$195 million to complete the logging runs, finish well operations, and release the rig. The additional costs are primarily due to the lost sampling tool and the drilling of the bypass well.
CGX holds a 32.00% participating interest with Frontera holding the remaining 68.00% participating interest in the Corentyne block, offshore Guyana.