CGX and Frontera Reveal Significant Oil Discovery Offshore Guyana

Canadian oil and gas company CGX Energy Inc. (TSXV: OYL) and its joint venture partner Frontera Energy Corporation (TSX: FEC) have announced a significant oil discovery at the Wei-1 well offshore Guyana.

The well encountered 210 feet of hydrocarbon bearing sands in the Santonian horizon, but oil samples were not obtained due to a tool failure.

The companies said they successfully finished drilling operations without any safety incidents and expects to release the drilling rig in early July 2023.

The Wei-1 well is located in the Corentyne block approximately 200 kilometers offshore from Georgetown, Guyana. The oil discovery marks the second discovery at the block following the discovery of light oil and condensate at the Kawa-1 well in 2022.

The joint venture has now updated its previously announced discovery in the Maastrichtian and Campanian intervals to 77 feet of net pay, with fluid samples indicating the presence of light crude in the Campanian and sweet medium crude oil in the Maastrichtian.

The companies said they were excited by the definitive presence of oil in the Maastrichtian and Campanian blocks and the presence of hydrocarbons in the Santonian and believes there is significant potential in the block.

Since ExxonMobil’s discovery of the Liza field in 2015, Guyana has emerged as one of the world’s most promising frontiers for offshore oil and gas exploration and production. Alongside partners Hess Corp and CNOOC, it operates the Stabroek, Canje and Kaieteur blocks and is targeting to have six FPSOs online by the end of 2027, bringing Guyana’s production capacity to more than 1.2 million barrels per day.

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