Canadian operator CGX Energy has advised that drilling of the Kawa-1 exploration well in the Corentyne block offshore Guyana will take longer than originally forecast, with costs also expected to increase.
CGX spudded the shallow-water Kawa-1 prospect on 22 August, using the Maersk Drilling semi-submersible rig Maersk Discoverer and had plans to reach total depth in the first half of December.
The company and project partner Frontera Energy said about 90% of the well has been drilled and initial results suggest an active hydrocarbons system is present at Kawa-1.
However, the programme will take longer than predicted and the well is now forecast to cost between $115 million and $125 million.
“CGX may be required to seek additional financing in keeping with the ongoing drilling programme and is currently assessing several strategic opportunities,” the company said.
No additional details were provided, apart from the fact that logging during drilling in the first of three geological zones of Kawa-1 had indicated the presence of hydrocarbons in several Campanian and Upper Santonian formations.
“The joint venture will provide an update on costs and will issue full exploration results on the Kawa-1 well once total depth has been reached and results have been analysed,” CGX added.
Following the drilling of Kawa-1, CGX is expected to mobilise the Maersk Discoverer to spud the Makarapan-1 wildcat in the Demerara block offshore Guyana.
CGX operates both Corentyne and Demerara with 66.67% stakes and Frontera holds the remaining 33.33%.