CGX Energy stops drilling Jaguar-1 well
2012-07-16 07:51 ET - News Release
Shares issued 411,948,218
OYL Close 2012-07-13 C$ 0.43
Mr. Suresh Narine reports
JAGUAR-1 WELL ENCOUNTERS LIGHT OIL BUT ENDED EARLY AND PLUGGED FOR SAFETY REASONS
CGX Energy Inc., along with its partners on the Jaguar-1 well located on the company's 25-per-cent-owned Georgetown petroleum prospecting licence, has ended drilling operations at the Jaguar-1 well on the Georgetown PPL, Guyana, and the well will be plugged at a depth of 4,876 metres without reaching the primary objective in the late Cretaceous geologic zone. The decision to stop drilling at this point was unanimously agreed by all partners based on safety criteria and was taken after reaching a point in the well where the pressure design limits for safe operations prevented further drilling to the main objective. Jaguar-1 was a high-pressure, high-temperature well which was spudded in February, 2012, using the Atwood Beacon jack-up rig. Whilst the primary late Cretaceous objective was not reached, samples of light oil were successfully recovered from two late Cretaceous turbidite sands. The partners to the Georgetown PPL are Repsol Exploracion S.A (15 per cent), as operator, along with YPF Guyana Ltd. (30 per cent), Tullow Oil PLC (30 per cent) and CGX Resources (25 per cent).
Kerry Sully, president and chief executive officer, stated: "Based on hydrocarbons recovered during the drilling of Jaguar-1, CGX is confident that a new well targeting the same prospect would hold significant promise and is therefore committed to seek a redrill utilizing a new well design."
Commenting on the company's plans in the Guyana-Suriname basin, Suresh Narine, chairman, reiterated CGX's near-term goals, stating: "In addition to our commitment well on the Corentyne block, we are planning a 3-D seismic program later this fall with our ultimate goal being to commit to a rig for a three-to-five-well program. Added to this would be the redrill of the late Cretaceous target addressed by the Jaguar-1 well."
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