After searching for more than two decades, the Canadian company CGX Energy and its partner Frontera Energy Corporation have struck oil in Guyana.
In a statement last evening, the CGX company announced that they have discovered an oil and gas reservoir off the coast of Guyana, and drilling on a second well could begin later this year.
While not disclosing the actual size of the potential find, the CGX explained that the discovery was made at the Kawa-1 Well in the Corentyne Block offshore Guyana.
The CEO of Frontera which is the partner company for CGX said they are very pleased to have successfully drilled the well.
Last month, CGX said the Kawa-1 results suggested the presence of oil and gas, but warned it may be required to seek additional financing to continue drilling. Costs associated with the well had risen to between $115 million and $125 million, it said.
Final well cost estimates and additional results of the discovery will be disclosed in the future, the company said.
Guyana already produces about 120,000 barrels per day of crude from an offshore project controlled by a consortium that includes Exxon Mobil, Hess Corp and China’s CNOOC Ltd.
This latest discovery is expected to add to that amount.