CGX Energy Announces 200ft Net Pay For Kawa-1, Abandons 2022 Exploration Plans For Demerara

CGX Energy (TSXV: OYL) this morning released slightly more details on its Kawa-1 well, which was drilled off shore of Guyana. The well was the first such well drilled on the Corentyne Block under a joint venture with Frontera Energy (TSX: FEC).

Initial results on the well were first released on January 31, wherein the company indicated it drilled to a total depth of 6,578 metres. Drilling was conducted on the northern portion of the Corentyne Block, targeting the Campanian and Santonian channel/lobe complex.

At the time the firm announced that it had hit approximately 54 metres, or 177 feet, of hydrocarbon-bearing reservoirs. At the time, net pay data was not provided, with further testing required. This morning however the firm announced that after conducting “early-stage” wireline logging, the firm has confirmed prior indications from the property, reporting a total of 200 feet of net pay at multiple depths throughout the well.

Further logging and sampling is said to be ongoing.

As a result of the success seen by the venture, the duo is reportedly focusing solely on the Corentyne block, and no longer plans to conduct drilling activities on the Demerara block this year as previously planned. Further, the firm reported it is “currently in engaged in discussions with the Government of Guyana” in relation to the Demerara block, however details on what these discussions relate to specifically were not provided.

CGX Energy last traded at $3.10 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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