Canadian operator CGX Energy has indicated that drilling the Kawa-1 exploration well in the Corentyne block off Guyana will take longer than initially expected, and costs are also expected to rise.
CGX dug the shallow-water prospect Kawa-1 on August 22, using the Maersk Drilling Maersk Discoverer semi-submersible platform, and planned to reach full depth in the first half of December.
The company and project partner Frontera Energy said about 90% of the well has been drilled and early results suggest an active hydrocarbon system is present at Kawa-1.
However, the program will take longer than expected and the well is now expected to cost between $ 115 million and $ 125 million.
“CGX may need to seek additional financing in accordance with the ongoing drilling program and is currently evaluating several strategic opportunities,” the company said.
No further details were provided other than the fact that logging during drilling in the first of three geological zones at Kawa-1 indicated the presence of hydrocarbons in several Campanian and Upper Santonian formations.
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“The joint venture will provide a cost update and release full exploration results on the Kawa-1 well once full depth is reached and the results analyzed,” added CGX.
After the drilling of Kawa-1, CGX should mobilize the Maersk Discoverer to dig the wildcat Makarapan-1 in the Demerara block off Guyana.
CGX operates both Corentyne and Demerara with 66.67% of the shares and Frontera owns the remaining 33.33%.