CGX Energy (TSXV: OYL) has seen its joint venture with Frontera Energy (TSX: FEC) hit oil. The discovery was made at the firms Corentyne block, found offshore Guyana, where the duo conducted an exploratory well 200 kilometres off the coast of Georgetown.
Oil was discovered following the completion of drilling of the Wei-1 well, which was drilled to a depth of 20,450 feet. The well is said to have intersected 210 feet of hydrocarbon bearing sands in the Santonian horizon, which is an improvement over the 75 feet of net pay in secondary targets previously identified by the company.
Wireline logs and core samples are said to have been obtained by the joint venture, however oil samples were not obtained due to a tool failure downhole. The Santonian horizon is now to be analyzed by a third party to define net pay and evaluate the interval.
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READ: CGX Energy’s Wei-1 Well Hits 71 Feet Of Net Oil Pay In Secondary Targets
The venture meanwhile has updated its data on secondary targets, the Campanian and Maastrichtian horizons, to having intersected net pay of 77 feet, rather than 75 feet. This follows fluid samples, whereby it was identified that light crude exists in Campanian, while sweet medium crude was intersected in the Maastrichtian.
Following the completion of the well, CGX and Frontera will now compile collected data to update the current model for the Corentyne block. A central channel complex at the block is said to be yet to be evaluated, with the duo suggesting that significant potential remains for the block.
CGX currently has a 32% participating interest in the Corentyne block.
CGX Energy last traded at $1.63 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.
