JV seeking partners for block offshore Guyana to unlock its hydrocarbon potential

Joint venture (JV) partners in the Corentyne block – Canada’s CGX Energy and Frontera Energy – are on the lookout for partners to enable the development of discoveries on the Corentyne block offshore Guyana, as exploration results support the potential for a standalone shallow oil resource development across the block.

CGX and Frontera highlight that additional upside has been identified in Campanian and Santonian horizons while 514-628 mmboe PMean unrisked gross prospective resources are estimated in Maastrichtian horizons in the northern portion of the Corentyne block, which backs the potential for a standalone oil development across the block from Maastrichtian horizons. This is based on four separate evaluations, two by independent, third-party resource evaluators, drilling results at Wei-1, and an updated interpretation of Kawa-1 well results.

Gabriel de Alba, Chairman of Frontera’s Board of Directors, and Co-Chairman of CGX’s Board of Directors, commented: “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 believes that approximately 514 to 628 mmboe PMean unrisked gross prospective resources may be present in the Maastrichtian horizons alone and that additional potential upside may exist in the deeper Campanian and Santonian horizons.”

As a result, the duo is pursuing a potential farm-down of interests in this block with support from Houlihan Lokey. The Guyana partners, which are in the process of concluding the exploration phase of the project, explain that typical deepwater developments can take four to seven years from discovery to first oil.

While the total cost of a typical deepwater project varies due to several factors that challenge each project, the JV elaborates that these projects are more complicated developments that require appraisal drilling and conceptual modeling before a final investment decision (FID) can be made. Following FID, it takes around three years to complete detailed design, construction, and commissioning, prior to the first oil.

Professor Suresh Narine, Executive Co-Chairman of CGX’s Board of Directors, remarked: “We have weathered border challenges, economic downturns, and unsuccessful exploration wells; our joint venture with Frontera has maintained and strengthened this unwavering focus.

“With successful discoveries at Wei-1 and Kawa-1, we are encouraged by the definitive presence of oil in the Corentyne block, and our commitment is being rewarded with potentially commercially viable prospective resources in the Maastrichtian interval with potential upside in the Campanian and Santonian intervals.”

As previously disclosed, the duo retained SIA, a Subsea 7 – Schlumberger joint venture, to complete a conceptual field development plan for the northern portion of the Corentyne block including subsea architecture, development well planning, production and export facilities, and other considerations. However, additional appraisal activities will be required before commerciality can be determined.

Orlando Cabrales, Chief Executive Officer of Frontera, stated: “The joint venture remains excited about the Corentyne block’s potential in the highly sought-after Golden and Silver Lanes in one of the most exciting basins in the world.”

Currently, the joint venture has a 100% working interest in the Corentyne block with Frontera holding a 72% stake and CGX the remaining 28%.