CGX Energy Inc - CGXEF stock
OTC Symbol: CGXEF | OTC Tier: Pink Current
About CGX Energy[edit]
CGX Energy Inc. (OTC: CGXEF, TSXV: OYL) is a Canadian-based oil and gas exploration company that focuses on exploring, developing, and producing petroleum resources in Guyana, South America. The company's headquarters is located in Toronto, Ontario.
CGX Energy was founded in 1998 and has since established a strong presence in the Guyana-Suriname Basin, which is considered one of the most prospective hydrocarbon basins in the world. The company has a 100% working interest in four petroleum prospecting licenses covering an area of approximately 9,000 square kilometers offshore Guyana.
CGX Energy's main exploration focus is the Corentyne Block, which is located adjacent to the Stabroek Block, where ExxonMobil has made several significant oil discoveries. The company has conducted extensive exploration activities in the Corentyne Block, including acquiring 3D seismic data and drilling several wells.
In addition to its oil and gas exploration activities, CGX Energy is committed to environmental and social responsibility. The company has implemented measures to minimize its impact on the environment and engage with local communities to create sustainable development opportunities.
Guyana-Suriname Basin[edit]
Wei-1
The Wei-1 well was spud in early 2023 and is targeting Maastrichtian, Campanian, and Santonian reservoirs.[1] According to an article if Offshore, CGX Energy Inc. and Frontera Energy Corporation have spudded the first exploration well in the Corentyne Block offshore Guyana. The well, named Wei-1, is being drilled using the Maersk Discoverer semi-submersible drilling rig and is expected to reach a total depth of approximately 6,200 meters.[2]
The Wei-1 well is targeting multiple prospects in the Santonian and Campanian geologic zones, which are known to contain significant oil and gas reserves in the nearby Stabroek Block. The well is expected to take approximately 90 days to drill and will provide valuable information about the hydrocarbon potential of the Corentyne Block.[2]
CGX Energy and Frontera Energy each hold a 35% working interest in the Corentyne Block, while the remaining 30% is held by a subsidiary of Petrovietnam Exploration and Production Corporation. The joint venture partners have committed to investing $140 million in exploration activities in the block, which includes drilling up to four exploration wells.[2]
The Wei-1 well marks an important milestone for CGX Energy's exploration program in Guyana and could potentially lead to the discovery of significant oil and gas reserves in the Corentyne Block.[2]
Kawa-1
In August 2021 the Kawa-1 exploration well spudded on the Corentyne block, targeting three Campanian to Santonian-aged zones. Adjacent blocks have produced significant commercial discoveries.[3]
On January 31, 2022 the company announced that it had found approximately 177 feet of reservoirs bearing hydrocarbons.[4] This news lifted the stock price by about 65%. However, an operations update on March 3, 2022 indicated that they plugged and abandoned the well, resulting in a price decline of nearly 50%.[5]
Deep Water Port[edit]
In 2012 CGX acquired a 50 year lease from the government of Guyana for 55 acres of land adjacent near “Crab Island” for the development of a deep water port. This port will service oil and gas exploration/production, agricultural export, containerized import/export, cruise ship docking, and regional shipping. Development will be in two phases: 1) Wharf platform build out to channel with expected completion in Dec. 2021, and 2) Expansion with expected completion in 2025.[6]
In an August 2022 investor presentation, target dates were stated as:[7]
- 2022 for wharf buildout, channel access, facilities (fuel, oil-field service, agriculture, warehouse, workshop, offices, logistics yard, waste anagement, and commodities)
- 2024-2025 for Phase 2 Expansion which includes container stackers, expand container yard, increase silo capacity, wharf expansion project, and traffic optimization
When the port is finished it will be the only deep water port in Guyana, and the third largest in the country.[8]
- ↑ cgxenergy.com. Corporate Presentation. March 2023.
- ↑ 2.0 2.1 2.2 2.3 Offshore. CGX, Frontera spud Wei-1 well offshore Guyana. January 23, 2023.
- ↑ cgxenergy.com. Corentyne Concession. Retrieved on 4/14/2023.
- ↑ Yahoo Finance. Canada's CGX Energy reports oil and gas discovery off Guyana coast. January 31, 2022.
- ↑ Yahoo Fianance. CGX Energy Files Year-End 2021 Audited Consolidated Financial Statements and Provides Operational Updates. March 2, 2022.
- ↑ cgxenergy.com. CGXEnergy Deep Water Port Presentation. October 2020.
- ↑ cgxenergy.com. Deep water port presentation. August 25, 2022.
- ↑ Reuters. CGX Energy to start dredging, dock construction for port in Guyana -executive. February 17, 2022.
