(Guyana Chronicle) DRILLING of the Kawa-1 well, the first well at the Corentyne Block offshore Guyana, is set to commence before August 15 and will cost close to US$85 million, CGX Energy Inc has said.
The Kawa-1 well is located in the north-east quadrant of the Corentyne Block, approximately 200 km offshore Georgetown. The water-depth is approximately 355 metres (1,174 ft) and the expected total depth of the Kawa-1 well is 6,575 metres (21,700 ft).

As previously announced by CGX, Kawa-1 will be drilled by the Maersk Discoverer, a sixth-generation, semi-submersible, currently working in Trinidad for another operator.
CGX Resources Inc., a wholly owned subsidiary of CGX and operator of the Corentyne block, has secured all necessary contracts for the drilling of Kawa-1 and is now commencing operational activities to meet the targeted spud window.

Based on the latest update from the company, the well is expected to be spudded within August 1 to August 15 and reach total depth in approximately 85 days. The primary target of the Kawa-1 well is a Santonian age, stratigraphic trap.
The estimated cost to drill and evaluate Kawa-1 is between approximately US$80-$85 million, which CGX expects to finance from one or more options that are currently being considered by the company.

Back in April, it was reported that Frontera Energy Corporation has injected US$19 million (approximately G$4.1B), in the form of a loan, into CGX.
Frontera Energy Corporation which, together with CGX, holds Petroleum Prospecting Licences for the Corentyne and Demerara blocks, announced that it has entered into an agreement with CGX for a US$19 million loan, which will enable the company to continue financing its share costs related to the Corentyne, Demerara and Berbice blocks, the Berbice Deep Water Port (BDWP), and other budgeted costs, as agreed to by Frontera.

Executive Co-Chairman of CGX, Professor Suresh Narine, was quoted in the statement as saying: “These are exciting times for CGX, the joint venture and our stakeholders as we get closer to spudding Kawa-1.
“We have exciting exploration plans for the Kawa-1 and Makarapan-1 wells on the Corentyne and Demerara Blocks and, as importantly, we are developing the infrastructure necessary to support and enhance broader energy and trade-industry activity through the Berbice Deep-water Port Project. We look forward to executing on our programmes and creating value and opportunity for our stakeholders.”

It was reported in February that an independent prospective resource study has affirmed the world-class prospects of the Corentyne and Demerara blocks.
“As confirmed by the independent resource evaluation commission, the Guyana basin offers the joint venture access to a leading offshore oil opportunity. We expect a robust Guyana work programme with the advancement of our exploration wells, as we continue executing on our plan to realise this value for our shareholders.
“The independent prospective resource study reaffirms our excitement about the world-class prospectivity of the Corentyne and Demerara blocks offshore Guyana,” former Chief Executive Officer (CEO) of Frontera, Richard Herbert, said.

The independent prospective resource study and report captured the Corentyne North Area, Corentyne Main Area and Demerara Block, offshore Guyana.
Outside of the prospective projects, U.S oil giant ExxonMobil is the only operator, so far, which has started production offshore Guyana. This company –- operator of the Stabroek, Canje and Kaieteur blocks –- has made 20 discoveries since May 2015 and began production in December 2019 from the Liza Phase One development project.