CGX Energy’s Wei-1 Well Hits 71 Feet Of Net Oil Pay In Secondary Targets

CGX Energy (TSXV: OYL) this morning reported that the Wei-1 exploration and appraisal well has finally completed drilling. The well, after a bypass was completed, was drilled to a total depth of 20,450 feet. Drilling of the well began in January.

The final well is being referred to as Wei-1BP1, after a bypass was drilled from 18,757 feet to total depth, after the Wei-1 well was drilled to 19,142 feet. The bypass well is said to have penetrated the Santonian targets within the Corentyne block.

The original Wei-1 is said to have hit 71 feet of net oil pay prior to the bypass being conducted, with the pay encountered in the Maastrichtian and Campanian targets. The bypass meanwhile is said to have hit “multiple hydrocarbon shows in the primary target reservoirs,” which is in the Santonian. Wireline logging is ongoing, along with side wall core sampling and MDT.

Full results are slated to be released once the evaluation is completed.

The results are said to be consistent with pre-drill expectations, confirming the geologic and geophysical assessment of the block.

The utilization of a bypass however has had significant cost considerations, with the final cost estimate for the well now estimated between $190 and $195 million, an increase from the prior estimate of between $175 and $185 million. For comparison, the Kawa-1 exploration well cost approximately $141 million.

CGX currently has a 32% participating interest in the Corentyne block.

CGX Energy last traded at $1.35 on the TSX Venture.

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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.