Toronto, Ontario–(Newsfile Corp. – March 7, 2024) – CGX Energy Inc. (TSXV: OYL) (“CGX” or “company“) today, management discussion and analysis (“Disclosure of financial informationThese financial disclosures will be posted on our website (www.cgxenergy.com) and on SEDAR (www.sedarplus.ca). Unless otherwise stated, all values in financial disclosures are expressed in US dollars.
Company highlights:
Wei-1 well status
As previously disclosed, the Wei-1 well was drilled by the Company and Frontera Energy Corporation (“frontera“), joint venture partner (“joint ventureOn June 11, 2023, the Company reached a significant milestone by reaching a depth of 20,450 feet in the Wei-1 well. Subsequently, wire logging work was successfully completed by June 23, 2023, and the work related to Wei-1 was completed. The agreement was signed by July 5, 2023, and the drilling rig was released.
During the drilling process, the Wei-1 well encountered multiple oil-bearing intervals in the northern part of the Corentine field. These formations span different geological periods, including Maastrichtian, Campanian, and Santonian. Notable discoveries include the presence of medium-sweet crude oil with an API of 24.9 in the Maastrichtian interval. In the Campanian section, the presence of mobile hydrocarbons was confirmed through downhole fluid analysis.
The joint venture believes that the quality of the rock discovered in the Wei-1 well in the Maastrichtian Horizon is similar to that reported in the Riza discovery in the Stabroek field. The results further demonstrate the potential for independent shallow oil resource development across the Corentyne field. The joint venture found a net salary of 228 feet in Kawa-1 and a net salary of 114 feet in Wei-1, as summarized below.
|
Feet of net payments |
Wei-1 |
river-1 |
|
maastrichtian |
13 |
68 |
|
campanian |
61 |
66 |
|
Santonian |
40 |
76 |
|
Coniacian* |
– |
18 |
|
Total net payment |
114 |
228 |
*Coniacian is only applicable to Kawa-1 well.
An independent third-party laboratory conducted an analysis of the rock and fluid properties of the Campanian and Santonian sections in the fourth quarter of 2023. The data showed low permeability in the Kawa-1 and Wei-1 intrusions.
The joint venture could have a total potential risk-free resource of approximately 514-628 mmboe P average in the Maastrichtian horizon alone, with further potential upside in the deeper Campanian and Santonian horizons. I think it is possible. The joint venture believes that Maastrichtian has potential for independent commercial development and potential upside in deeper zones.
Amendments to the 2023 Joint Operating Agreement
August 9, 2023, CGX Resources Inc. (“CRI“) and Frontera Energy Guyana Corporation (“Frontera Guyana“) Frontera, a wholly owned subsidiary of Frontera, has entered into an agreement to further amend the joint operating agreement (“joa“) date is January 30, 2019 and has since been amended (“2023 JOA Amendment“).
Pursuant to the 2023 JOA Amendment, the Company will transfer a 4.7% participating interest in the Corentine Block to Frontera Guyana in exchange for Frontera Guyana contributing up to approximately 1,000 yen to CGX's participating interest in costs related to the Wei-1 well. agreed to additional transfer. $16.5 million.
Pursuant to the 2023 JOA Amendments, we will be entitled to receive a reallocation of funds from Frontera Guyana if the final amount paid by Frontera Guyana as a carry against the CGX participation interest portion of Wei-1 expenses is less than $16.5 million. . A portion of said 4.7% interest represents the portion of the consideration that is not used to pay his CGX participation interest in costs related to the Wei-1 well. The 2023 JOA Amendments were completed during the fourth quarter of 2023, pending approval from the Government of Guyana.
Depending on the final cost of the Wei-1 well, the Company will be entitled to a reassignment of a 0.78% participation in the Corentine Block from Frontera Guyana. However, pursuant to certain final letters dated March 7, 2024, (“closing letterr”) In discussions between the Company and Frontera Guyana, the Company will instead receive from Frontera Guyana (i) a reassignment of its 0.18% participation in the Corentine Block; (ii) to cover certain other operating activities; agreed to receive cash consideration of $1,500,000 for the Company's expenses and (iii) $600,000 for the settlement of other amounts payable related to the joint operation.
Pursuant to the 2023 JOA Amendment Agreement and Closing Letter, the Company will hold a 27.48% interest in the Concession and Frontera Guyana will hold the remaining 72.52% interest in the Concession.
Houlihan Lokey supports Corentyne Block in aggressively pursuing strategic options
Houlihan Lokey, one of the world's leading investment banks and capital markets experts, aims to develop this potentially transformative oil investment into one of the most attractive oil and gas The Company is supporting the active pursuit of strategic options for the Corentyne Block, including the downfall of Today's world destination, Guyana. Data room opened and management presentations underway There is no guarantee that consideration of strategic options will result in a transaction.
Berbice deep water port
The in-stream construction of a 50 x 12 m access trestle, built west from the quay yard towards the Berbice River, was completed on budget and without any HSE-related incidents. Berbice Deep Water Port (“BDWPThe facility is intended to serve as an offshore supply base for the oil and gas industry and as a multi-purpose terminal servicing containerized specialty cargo, including import and export of agricultural products and construction aggregates.
The announcement of major infrastructure projects for Region 6 by the Government of Guyana has facilitated the early completion of the cargo side of the port, particularly with regard to the handling of aggregates and other construction materials that need to be imported into the region from other parts of the country. Masu. And offshore. Initial cargo operations at the port are expected to begin in the second quarter of 2024, based on expressed interest from third parties to utilize the port for the import and storage of aggregates. The port will be able to load and unload barges, primarily containing aggregates, from the completed trestles, as well as store materials in the completed port yard. This requires the construction of a ramp to access the cradle and the installation of mooring pilings on the cradle to aid in berthing the barge. Depending on construction schedule, financing, and supply chain, operations for the port's entire cargo terminal are expected in late 2024 and oil and gas support operations in 2025. Grand Canal Industrial Estates Inc (“GCIE”) continues to develop and foster partnerships between Brazilian and Guyanese companies. This is necessary to begin handling cargo between the states of Roraima and Amazonas in northern Brazil.
About CGX
CGX is a Canadian-based oil and gas exploration company focused on oil exploration in the Guyana-Suriname Basin and the development of a deepwater port in Berbice, Guyana.
Neither the Toronto Stock Exchange, the TSX Venture Exchange, nor their Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange and the TSX Venture Exchange) disclaims any responsibility for the adequacy or accuracy of this release. Not responsible.
Cautionary and forward-looking statements:
This news release contains forward-looking statements. All statements, other than statements of historical fact, that refer to activities, events or developments that CGX believes, expects or anticipates will occur or will occur in the future, including statements regarding exploration and development plans and objectives with respect to the Kawa River. (but not limited to). -1 or Wei-1 Well, or BDWP) are forward-looking statements. These forward-looking statements reflect CGX's current expectations or beliefs based on currently available information. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. Furthermore, there can be no guarantee that such actual results will be achieved or materially achieved. The expected results or impact on our company may be Factors that could cause actual results or events to differ materially from current expectations include, among others: the need to obtain necessary regulatory approvals; the ability of the joint venture to successfully explore and develop offshore fields and to finance exploration and development and the impact of unanticipated costs and expenses; Changes in stock and bond markets. our perception of the prospects and prospects of the oil and gas industry in the countries in which we operate or invest; and other risks disclosed under the heading “Risks and Uncertainties” and elsewhere in the Company's Management's Discussion and Analysis filed on SEDAR (www.sedarplus.ca) dated March 7, 2024. Masu. Any forward-looking statements speak only as of the date on which they are made and, except as required by applicable securities laws, CGX does not believe that any forward-looking statements, whether as a result of new information or otherwise, will We disclaim any intention or obligation to update any forward-looking statements. future events, results, etc. Although CGX believes that the cautionary statements applicable to it and the assumptions inherent in forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, therefore, Undue reliance should not be placed on such statements due to their uncertainties.
For more information, please contact Todd Durkee, CGX Vice President of Development, info@cgxenergy.com, www.cgxenergy.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/200977.
