CGX says nothing new to report as drilling of well approaching end

CGX Energy says that there is “nothing new” to report from the operations in its 100 percent operated licence at the Eagle well off the Corentyne Coast as it approaches the end of its drilling campaign.

The company in a comment yesterday said that drilling “is continuing.”However, according to the company’s own timetable, it should have completed the drilling project within a timeframe of two months.

Asked yesterday for a comment as to whether CGX would be making an official announcement on the status of their operation any time soon, Minister of Natural Resources and the Environment Robert Persaud said he did not want to speculate on the issue.

CGX on February 13 began drilling for oil in the Eagle-1 Well in its 100% owned and operated Corentyne Petroleum Prospecting Licence – the same spot it was evicted from by Surinamese gunboats 12 years ago.

CGX’s rig is one of two drilling for oil offshore Guyana, a first for this country. CGX also has a 25% interest in the other licence which also includes Repsol and Tullow.

The Eagle-1 well will be drilled to a depth of 4,250 metres to test the Eocene and Maastrichtian geologic zones. The well is being drilled by the Ocean Saratoga semi-submersible drilling rig owned by a subsidiary of Diamond Offshore Drilling, Inc. The CGX operation at the Eagle well is costing the company some US$55 million and to operate the Ocean Saratoga costs US$500,000 per day.

Steve Hermeston, President and CEO said upon commencement of drilling in the release that the event was a significant milestone in the history of CGX.

“We are returning to drill the Eagle prospect that was halted in June 2000 due to overlapping maritime border claims between Guyana and Suriname. Renewed exploration follows over seven years of dedication and co-operation between the Government of Guyana and CGX in resolving the Maritime Boundary between Guyana and Suriname peacefully and finally through the International Tribunal of the Law of the Sea (ITLOS) process,” he had said in February.

The company, following the resolution of the maritime border, had shot two-3D seismic surveys, creating a portfolio of prospects on the Corentyne PPL, Eagle-1 being the first well to be drilled to test the original Eocene prospect, plus a deeper Maastrichtian prospect, both of which are stratigraphic tests.

The company had said that the current location will significantly benefit from the 3D acquired in conjunction with advances in better understanding the optimal position to test reservoirs deposited in deep water environments.

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.

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