Exploration consortium abandons oil well off Guyana

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Published on Tuesday, 17 July 2012 14:00

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Georgetown, Guyana (GINA): Drilling of the Jaguar-1 exploration well undertaken by the Repsol Exploracion SA-headed consortium consisting also of YPF Guyana Ltd; CGX Resources Inc.; and Tullow Guyana BV in their contract area referred to as Georgetown Block Offshore Guyana, has come to a close.

The decision was formally communicated to the government through the Minister of Natural Resources and the Environment, Robert. Persaud, on Sunday. The well, classified as high pressure, high temperature and which was expected to target formations as deep as 6,541m commenced actual drilling on February 7, 2012, after the Atwood Beacon Drill Rig was delayed in arriving from drilling in Suriname.

The drilling of Jaguar-1 was estimated to be completed in approximately six months and progress with the well was steady. However, down-hole conditions became very challenging and despite the resort to technical and engineering solutions by the consortium, government accepts the consortium’s decision to close operations, safety being the primary consideration.

The Guyana Geology and Mines Commission has been mandated to work with all related parties on a full analysis and determinations from information gathered so far. Evidence of petroleum occurrences was encountered, which was encouraging to all the parties. Government and operator for the Repsol consortium, continue to be engaged on the way forward, which could include a second well to achieve the intended objective of the Jaguar-1. These discussions have started.

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