In the light of recent Hydrocarbon finds by ExxonMobil, Canadian oil exploration company CGX Energy Inc is seeking support to intensify its exploration efforts on the Corentyne block in the Guyana-Suriname Basin.
The company, which has been involved in explorations in the area for 18 years, says it is “very encouraged” by the recent discoveries by ExxonMobil on the Stabroek Block located immediately adjacent to the Corentyne block and intends to spend in excess of US$320 million over the next few years in its attempt to locate commercially viable deposits in what it refers to as a “proven hydrocarbon system.”
Professor Suresh Narine, Co-Chairman of the company, explained to interested persons gathered at Cara Lodge on Friday that CGX will be exploring in the same geometrical formations that have spawned the Exxon discoveries as well as those by explorations offshore of West African Countries such as Senegal.
“The Guyana-Suriname basin is quickly moving from a frontier basin to one with predictable reserves, over the next five years we expect to see more than three times the current exploration in that area as each new find helps us to see better through a darkened glass,” he said.
In this light the company is seeking financial support.
Dewi Jones, Chief Executive Officer of the company, explained, “The extension on our work commitments allows the company to technically weigh how best to proceed with our drilling campaign. We are currently investigating joint ventures to drill the next exploration well given the renewed interest in the Guyana-Suriname Basin. However, in the event we are not successful in attracting a suitable joint venture partner, the Company will seek alternative financing structures in order to drill the next well and meet its work commitments in Guyana.”
The company’s efforts to source these funds has been facilitated by Government of Guyana which has extended the date by which the company is expected to begin drilling its newest wells on the Corentyne block.
“On June 18 2015, CGX Energy received approval to extend its spud date deadlines on the Corentyne Block. The Government of Guyana granted approval of the extensions for the spud date on the first commitment well from October 31, 2015 to July 31, 2016 and an extension to the spud date deadline on the second commitment well from November 27, 2016 to November 27, 2017.” CGX said in a press release.
According to the company representative, “These extensions were granted to allow the Company to determine how best to explore the acreage given recent positive developments in the basin related to the discovery of hydrocarbons. The [extra] time [will be used] to design and plan for the spudding of the next exploration well on the Corentyne Block.”