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Oil producer Frontera Energy
Toronto-listed FEC.TO said on Wednesday it and its joint venture partner, CGX Energy OYL.V , have submitted a notice of potential commercial interest to the Guyana government for their latest oil discovery in the South American country.
Under Guyana’s Petroleum Law, a Notice of Potential Commercial Interest is required to request additional time to evaluate a discovery and determine its viability.
The Frontera-CGX group could be the second to develop Guyana’s vast oil and gas reserves, following Exxon Mobil XOM.N’s massive discoveries and the rapid development of the Stabroek block, where it produces, with its partners, more than 600,000 barrels of oil per day.
Since last year, Frontera and CGX have been seeking a partner for their Corentyne block, having divested most of the area at the end of the period of substantial exploration.
Last year, the companies drilled a second well in the Corentyne block, Wei-1, allowing them to fulfill the conditions for a second 10-year license renewal period. The Wei-1 served as an appraisal well for a discovery made in 2022, Kawa-1, the companies said.
The companies and Guyana have begun discussions about the bloc, “including discussions on the conditions under which other activities could be carried out by the joint venture,” Frontera said in a press release. “The joint venture looks forward to concluding these discussions as soon as possible
In December, the companies said they had retained investment bank Houlihan Lokey
HLI.N to find a partner in Guyana.
