Worth noting as well is the company’s hiring of top-flight talent to run operations. Kevin Lacy, ex-Chevron (NYSE:CVX) VP of Drilling and Completions, was named Drilling Director for the wells to be drilled at Corentyne and Demara. The company has staffed up with other highly qualified individuals as well for on-rig and off-rig assignments. This lends credibility to the overall effort and it’s plus for the company to get folks of this caliber. Unexpected events in deepwater can burn capital at a horrendous rate, leading to poor decision-making. Having someone with Lacy’s credentials makes it feasible over the short run. I’ll put forth my idea of the next steps assuming a discovery is made, a little further down the page.
Something that should be mentioned is that a tiny company like CGX has absolutely no business doing deepwater exploration. Remember even Apache-no slouch organization, went running for a “Big Daddy” when the first Block-58 well showed commercial. Without the guidance of a world-class operator, like TTE, the Suriname development in Block-58 would just be water cooler-talk, instead of heading for an FID later this year.
The map above from Frontera Energy’s site does a pretty good job of laying out the prospective potential of this well. The graphic below from a CGX presentation shows the target, believed to be a sandstone reservoir with properties similar to those reported by Apache in their wells listed below, offshore Suriname.