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May 25, 2021

Hess increases stake in Kaieteur Block, offshore Guyana

Hess Corporation has increased its stake in Kaieteur Block, offshore Guyana, to 20%.

By Archana Rani

Hess Corporation has acquired an additional 5% stake in the Kaieteur Block, offshore Guyana, from Cataleya Energy for an undisclosed sum.

The transaction increased Hess Corporation’s working interest (WI) from 15% to 20% in the Kaieteur Block.

The acquisition follows the oil discovery at the Tanager-1 well, located in Kaieteur Block, in 2020.

Following drilling, the Tanager-1 well encountered 16m of net oil pay (20oAPI oil) in high-quality sandstone reservoirs of the Maastrichtian age.

The Tanager-1 well is currently considered to be non-commercial as a stand-alone development.

At the well, high-quality reservoirs were also encountered at the deeper Santonian and Turonian intervals.

However, reservoir fluids interpretation is reported to be equivocal at this stage, requiring further analysis.

Upon completion of the latest deal, the holdings of Kaieteur JV partners include Esso Exploration and Production Guyana, the operator, (35%), Ratio Guyana (25%), Cataleya Energy (20%) and Hess Guyana Block B Exploration (20%).

Westmount has an indirect interest in the project through stakes in minority partners Catelya Energy and Ratio Petroleum.

It owns a 5.3% stake in Cataleya Energy and about a 0.04% stake in Ratio Petroleum, the parent company of Ratio Guyana.

Westmount executive chairman Gerard Walsh said: “This move is consistent with the Stabroek partners’ assessment that the total basin potential of the Guyana-Suriname Basin is now more than twice the discovered resource to date, indicating a potential yet-to-find resource in excess of ten billion oil-equivalent barrels across the basin.

“It is also consistent with the view that considerable hydrocarbon resource potential may be present in the newly emerging deeper plays, such as the Lower Campanian/Upper Santonian play, where the 3D seismic data suggests that the channel systems are at least as extensive in the area as they are in the shallower Maastrichtian/Upper Campanian Liza play fairway.”

Currently, the Kaieteur JV partners are high-grading the next potential drilling targets on the substantial Cretaceous prospect inventory located in the southern part of the block.

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