Guyanese authorities have approved a plan presented by CGX Energy and its partner Frontera Energy to re-sequence the work programme for the offshore Corentyne block.
The companies put forward the revised work programme so they can gain a better technical understanding of the block – and its northern section in particular – before launching drilling work on an exploration well.
Canadian companies CGX and Frontera are joint venture partners in the block, with CGX as the operator.
Under the terms of the updated programme, the joint venture will acquire new seismic data that will provide greater clarity on the hydrocarbon potential of the block.
It is updip of the multiple discoveries recorded by ExxonMobil and its partners in the adjacent Stabroek block.
Estimated reserves were recently revised up from 5.5 billion to 6bn boe.
CGX and Frontera will analyse the new seismic acquired on the Corentyne block before deciding whether to drill the Utakwaaka well first or another target in the underexplored northern segment of the acreage.
Frontera’s CEO, Richard Herbert, applauded CGX’s successful renegotiation of the joint venture’s obligations in the Corentyne block, saying it would allow the companies “to gain better technical data, including 3D seismic, before drilling.”
He said the pair’s first two wells planned for 2020 would target “higher quality, lower risk prospects” because of the re-sequenced work programme.
The joint venture also aims to launch drilling work on a new commitment well in the Demerara block next year. Drilling of the well was originally due to kick off in February 2021.
Frontera is active in several South American countries and last week announced repairs on the NorPeruano pipeline in Peru were finished and normal operations had resumed. This has enabled the company to restart production from Block 192 in the country, with current output at around 3,000 bpd of crude.
The pipeline carries crude from the block to processing units on Peru’s Pacific coast.
Production is forecast to ramp up to 9,000 bpd, with the Fronetra’s contract to operate the block now likely to be extended until at least February 2020.
The end of Frontera’s two-year service contract with the Peruvian government to operate the 5,260 square km Block 192 has been put back several times because of recurrent problems on the NorPeruano pipeline.