Offshore Guyana JV Sets August Spud Window

(Re-published from Rigzone)

Drilling for the Kawa-1 well on the Corentyne block offshore Guyana is expected to start between August 1-15, Frontera Energy Corp. (TSX: FEC) reported this week.

Located in the northeast quadrant of the Corentyne block approximately 124 miles (200 kilometers) from Georgetown, Guyana, Kawa-1 lies in approximately 1,174 feet (355 meters) of water and is expected to reach total depth of 21,700 feet (6,575 meters) in roughly 85 days, Frontera noted in a written statement emailed to Rigzone. The firm holds a minority stake in the joint venture with operator and majority owner CGX Resources Inc. (TSXV: OYL).

As Rigzone reported in April, CGX has contracted the Maersk Discoverer semi-submersible rig for the exploration well – the first offshore Guyana contract for Maersk Drilling (CPH: DRLCO). Frontera pointed out this week that the Maersk Discoverer is currently working offshore Trinidad for another operator.

“There has been excellent progress by CGX to advance the substantial exploration opportunities in one of the world’s leading offshore basins,” remarked Frontera CEO Orlando Cabrales. “With the Kawa-1 spud window established, drilling and support contracts secured, and operational activities underway, I look forward to safely and efficiently improving our understanding of the potential of the Corentyne block over the coming months.”

Separately this week, CGX stated the current cost estimate to drill and evaluate Kawa-1 ranges from approximately US$80-$85 million.

“We are pleased to continue to advance our activities in what we believe is one of the world’s most important new oil and gas blocks in the last decade,” commented Gabriel de Alba, CGX’s co-chairman. “The CGX team has worked tirelessly to reach this point in coordination with all our stakeholders. We look forward to providing further details as soon as possible.”