LOGGING-WHILE-DRILLING AND CUTTINGS INDICATE
PRESENCE OF ACTIVE HYDROCARBON SYSTEM IN SEVERAL CAMPANIAN AND
UPPER SANTONIAN FORMATIONS
APPROXIMATELY 90% OF PLANNED FOOTAGE DRILLED
TO DATE
HORIZON 19, THE FIRST OF THREE GEOLOGICAL
TARGET ZONES HAS BEEN PENETRATED
THE PRIMARY AND SECONDARY SANTONIAN TARGETS
REMAIN TO BE DRILLED AND EVALUATED
TORONTO, Dec. 16, 2021 /CNW/ - CGX Energy Inc. (TSXV: OYL)
("CGX") and Frontera Energy Corporation (TSX: FEC)
("Frontera"), the majority shareholder of and joint venture
partner of CGX in the Petroleum Prospecting Licenses for the
Corentyne and Demerara blocks offshore Guyana (the "Joint Venture"), today
provide an operational update on the Kawa-1 exploration well in the
Corentyne Block, offshore Guyana.
To date, approximately 90% of the planned footage has been
drilled and the initial results suggest an active hydrocarbon
system is present at the Kawa-1 location. Horizon 19, the first of
three geological zones targeted by the Joint Venture, has been
penetrated. Logging-While-Drilling and cuttings indicate the
presence of hydrocarbons in several Campanian and upper Santonian
formations. The Joint Venture will run the planned 9 5/8" liner at
current depth, then drill ahead to the main Santonian target zone
(Horizon 23) and the deeper secondary Santonian target zone
(Horizon 25). The initial geological results will be further
evaluated by wireline logging at the end of the well as part of the
logging program for the deeper zones.
The Joint Venture is pleased to report that drilling operations
have recorded only a single lost time injury since August and
Covid-19 protocols have resulted in no disruptions to operations
and no positive cases detected after arrival on the drilling
unit.
Drilling has taken longer than originally forecast and costs are
projected to increase. The current cost estimate of the Kawa-1 well
is now forecast to be approximately $115-$125 million.
The Joint Venture will provide an update on costs and will issue
full exploration results of the Kawa-1 well once total depth has
been reached and results have been analyzed.
CGX may be required to seek additional financing in keeping with
the ongoing drilling program and is currently assessing several
strategic opportunities.
About Frontera:
Frontera is a Canadian public company involved in the
exploration, development, production, transportation, storage and
sale of oil and natural gas in South
America, including related investments in both upstream and
midstream facilities. Frontera has a diversified portfolio of
assets with interests in 37 exploration and production blocks in
Colombia, Ecuador and Guyana, and pipeline and port facilities in
Colombia. Frontera is committed to
conducting business safely and in a socially, environmentally and
ethically responsible manner.
If you would like to receive news releases via email as soon as
they are published, please subscribe here:
http://fronteraenergy.mediaroom.com/subscribe.
About CGX:
CGX is a Canadian-based oil and gas exploration company focused
on the exploration of oil in the Guyana-Suriname Basin and the
development of a deep-water port in Berbice, Guyana.
Advisories:
Cautionary Note Concerning Forward-Looking
Information
This news release contains forward-looking information within
the meaning of Canadian securities laws. Forward-looking
information relates to activities, events or developments that CGX
and Frontera believe, expect or anticipate will or may occur in the
future. Forward-looking information in this news release includes
references to statements regarding the progress and anticipated
costs of exploration projects and the issuance of full well
results. All information other than historical fact is
forward-looking information.
Forward-looking information reflects the current
expectations, assumptions and beliefs of CGX and Frontera based on
information currently available to them and considers their
experience and perception of historical trends, including
expectations and assumptions relating to commodity prices and
interest and foreign exchange rates; the current and potential
adverse impacts of the COVID-19 pandemic, including the status of
the pandemic and future waves and any associated policies around
current business restrictions; the performance of assets and
equipment; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the availability and cost of
labour, services and infrastructure; and the development and
execution of projects.
Although CGX and Frontera believe that the assumptions
inherent in the forward-looking information are reasonable,
forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be placed on
such information. Forward-looking information is subject to a
number of risks and uncertainties, some that are similar to other
oil and gas companies and some that are unique to CGX or Frontera.
The actual results may differ materially from those expressed or
implied by the forward-looking information, and even if such actual
results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or
effects on, CGX and Frontera. Documents filed by CGX and Frontera
from time to time with the securities regulatory authorities
(including annual information forms for fiscal 2020) describe the
risks, uncertainties, material assumptions and other factors that
could influence actual results and such factors are incorporated
herein by reference. Copies of these documents are available
without charge by referring to the respective profiles of CGX and
Frontera on SEDAR at www.sedar.com. All
forward-looking information speaks only as of the date on which it
is made and, except as may be required by applicable securities
laws, CGX and Frontera disclaim any intent or obligation to update
any forward-looking information, whether as a result of new
information, future events or results or otherwise.
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content:https://www.prnewswire.com/news-releases/cgx-energy-inc-and-frontera-energy-corporation-provide-operational-update-on-kawa-1-exploration-well-offshore-guyana-301446450.html
SOURCE Frontera Energy Corporation
