Frontera Energy struck oil in the Corentyne Block offshore Guyana, the company said this week.
"Initial results from the Kawa-1 well are positive and reinforce CGX and Frontera's belief in the potentially transformational opportunity our investments and interests in Guyana present for our companies and the country," said Frontera board chairman Gabriel de Alba.
"Kawa-1 results add to the growing success story unfolding in offshore Guyana as the country emerges as a global oil and gas exploration hotspot," he added.
Indeed, Guyana has turned into the brightest star in the oil universe lately after Exxon and its partner Hess made a string of discoveries in the Stabroek Block, unlocking reserves of more than 10 billion barrels of crude.
Since it first struck oil offshore Guyana, the U.S. supermajor has made more than 20 discoveries; the latest two announced earlier this month.
"Both discoveries increase our understanding of the resource, our continued confidence in the block's exploration potential, and our view that the many discoveries to date could result in up to 10 development projects," said Mike Cousins, senior vice president of exploration and new ventures at Exxon t the time.
It was thanks to Exxon's discoveries that Guyana became an oil exporter a couple of years ago and has further ambitions in this respect as production grows. This month, the daily average is seen rising threefold to 340,000 bpd after Exxon puts into operation a second floating production, storage, and offloading vessel.
Frontera, meanwhile, which is exploring the Corentyne Block through subsidiary CGX, plans to spud a second well in the block in the second half of the year.
Guyana, meanwhile, is in talks on an oil alliance with neighbors Suriname and Brazil. Reuters reported last month that the three were discussing building infrastructure that would help them better share their energy and natural resources.
By Irina Slav for Oilprice.com
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