KAWA-1 WELL ENCOUNTERS 177 FEET (54 METRES) OF
HYDROCARBON BEARING RESERVOIRS BASED ON LOGGING WHILE
DRILLING
ANNOUNCES COMMITMENT TO DRILL SECOND WELL ON
CORENTYNE BLOCK IN SECOND HALF 2022 USING MAERSK DISCOVERER
TORONTO, Jan. 31, 2022 /CNW/
- CGX Energy Inc.
(TSXV: OYL)
("CGX")
and Frontera Energy
Corporation (TSX: FEC)
("Frontera"), the majority shareholder
of CGX and joint
venture (the "Joint Venture") partner
of CGX in the
Petroleum Prospecting License for
the Corentyne block
offshore Guyana, today announced
that the Joint Venture has made a discovery at the Kawa-1 well, in
the Corentyne Block.
Gabriel de Alba, Chairman of
Frontera's Board of Directors and Co-Chairman of CGX's Board of
Directors, commented:
"Initial results from the Kawa-1 well are positive and
reinforce CGX and Frontera's belief in the potentially
transformational opportunity our investments and interests in
Guyana present for our companies
and the country. Kawa-1 results add to the growing success story
unfolding in offshore Guyana as
the country emerges as a global oil and gas exploration hotspot. On
behalf of the Joint Venture, I'd like to thank the Government of
Guyana for its long-standing
support as we worked together to deliver this successful
outcome."
The Kawa-1 well encountered approximately 177 feet (54 metres)
of hydrocarbon-bearing reservoirs within Maastrichtian, Campanian
and Santonian horizons based on initial evaluation of Logging While
Drilling (LWD) data. These intervals are similar in age and can be
correlated using regional seismic data to recent successes in Block
58 in Suriname and Stabroek Block in Guyana. The well also encountered hydrocarbon
bearing sands in deeper strata (Coniacian or older) which will also
be analyzed and could become the target of future appraisal
opportunities. The net pay and fluid properties of the hydrocarbons
across the shallow and deep reservoirs will now be confirmed with
electric wireline logging and fluid sampling, with results to be
disclosed as soon as practicable.
The Kawa-1 well was drilled to a depth of 21,578 feet (6,578
metres) and targeted the easternmost Campanian and Santonian
channel/lobe complex on the northern section of the Corentyne
block.
The Kawa-1 results support the Joint Venture's geological and
geophysical models and have helped de-risk equivalent targets in
other parts of the Corentyne license area. The end of well forecast
is currently projected to be the end of February 2022. Information on final well cost
estimates and additional results will be announced upon completion
of end of well activities.
CGX is currently assessing several strategic opportunities
to obtain additional financing to meet the costs of the
longer than expected drilling program.
Professor Suresh Narine,
Executive Co-Chairman of CGX's Board of Directors,
commented:
"Results from the Kawa-1 well represents a
positive milestone in the CGX journey as a pioneer oil and gas
explorer in the Guyana Basin.
Together with our partner Frontera, CGX looks forward to continuing
our socially and environmentally conscious approach to development
of Guyana's oil and gas industry
and port infrastructure. We are proud of our long partnership with
the Government and People of Guyana and of our reputation as Guyana's Indigenous Oil Company."
Orlando Cabrales, Chief
Executive Officer of Frontera, commented:
"We are very pleased to have successfully drilled the Kawa-1
well with our partner CGX. I commend the significant effort of all
the talented employees and contractors involved and their
dedication to helping this partnership achieve this important
milestone. We now have an ability to focus our efforts on
potentially transformational opportunities and to continue our
positive relationship with the government and people of
Guyana."
Second Exploration Well to be Drilled on Corentyne
Building on its recent offshore positive results at the Kawa-1
exploration well, the Joint Venture anticipates spudding its second
commitment well, called Wei-1, in the northwestern part of the
Corentyne block in the second half of 2022.
The Joint Venture has exercised its option to use the Maersk
Discoverer semi-submersible mobile drilling rig for the Wei-1 well.
This is an important step from a health and safety, efficiency, and
operational perspective and will maintain continuity in the
exploration program during a period of high demand in the region
and consistency in working with a team familiar with the rig.
The Wei-1 exploration well will target Campanian and Santonian
aged stacked channels in the western fan complex in the northern
section of the Corentyne block. The Wei-1 well is named after one
of the tallest peaks in the Pakaraima mountain range, which has
commanding visibility over the surrounding terrain. Wei Tepu was
historically used as a sentinel post by the Patamona People to
guard against attacks.
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.
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 34 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.
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 (including, without limitation, statements regarding the
anticipated completion of well activities, including testing
results, and timing of final well costs; the advancement of local
partnerships; the acceleration of regional exploration projects;
the development of material infrastructure assets; and the
requirement of CGX to secure additional financing). 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 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 or Frontera. Factors that could cause actual
results or events to differ materially from current expectations
include, among other things: volatility in market prices for oil
and natural gas (including as a result of a volatile oil price
environment due to the COVID-19 pandemic and the actions of OPEC
and non-OPEC countries and the restrictions imposed by governments
in response thereto); the duration and spread of the COVID-19
pandemic and its severity; the success of CGX's and Frontera's
programs to manage COVID-19; uncertainties associated with
estimating and establishing oil and natural gas reserves and
resources; liabilities inherent with the exploration, development,
exploitation and reclamation of oil and natural gas; CGX's and
Frontera's ability to access additional financing; the ability of
each of CGX and Frontera to: meet its financial obligations and
minimum commitments, fund capital expenditures and comply with
covenants contained in the agreements that govern indebtedness;
political developments in the countries where CGX and Frontera
operate; the uncertainties involved in interpreting drilling
results and other geological data; geological, technical, drilling
and processing problems. Documents filed by CGX and Frontera from
time to time with 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
change 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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SOURCE Frontera Energy Corporation
