Canada's CGX Energy on Monday reaffirmed it and parent Frontera Energy discovered an oil and gas reservoir off the coast of Guyana and said drilling on a second well could begin later this year.
Its Kawa-1 well found approximately 177 feet (54 meters) of hydrocarbon-bearing reservoirs based on an initial evaluation of logging data, the company said. It did not disclose the size of the potential find.
"We are very pleased to have successfully drilled the Kawa-1 well with our partner CGX, said Orlando Cabrales, Frontera's CEO. Frontera is the majority shareholder of CGX and its joint venture partner in the exploration of Corentyne block, offshore Guyana.
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 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.
(Reporting by Gary McWilliams; Editing by Aurora Ellis)