CGX Energy (TSXV: OYL) and Frontera Energy (TSX: FEC) this morning provided an estimate for oil resources in the northern portion of the Corentyne Block, which is found offshore of Guyana.
The duo report that between 514 and 628 million barrels of oil equivalent PMean unrisked gross prospective resources exist within the Maastrichtian horizons, while further upside could exist within the Campanian and Santonian horizons. The prospective resource estimate is based on four separate evaluations, and results from the Wei-1 and Kawa-1 wells.
With the prospective resource identified, the venture is said to be in the process of concluding the exploration phase of the project, having already previously retained SIA to complete a conceptual field development plan for the northern portion of the block.
The venture meanwhile is said to be actively pursuing options for a possible farm down agreement to fully “unlock the potential of the Corentyne Block,” which is being conducted with support from Houlihan Lokey.
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“When Frontera and CGX formed its Joint Venture in 2019, it did so with the singular goal of discovering sufficient resources to underpin a potential standalone commercial oil development offshore Guyana. The Joint Venture is now well on its way to achieving its objective. [..] The Joint Venture, with support from Houlihan Lokey, is actively pursuing options for a possible farm down, to unlock the potential of the Corentyne block,” commented Gabriel de Alba, Chairman of Frontera.
CGX Energy last traded at $0.375 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.
