Four companies will begin oil exploration here during the latter half of 2007, Acting Commissioner of Mines at the Guyana Geology and Mines Commission (GGMC) William Woolford said, while a fifth, petroleum giant Exxon Mobil, will commence seismic work to determine whether or not drilling should take place offshore.
Woolford also said he hoped that a number of large gold companies would produce at the levels seen at Omai Gold Mines Ltd during that company's 12-year production run.
"We anticipate Groundstar Resources will be doing work in the Takutu area, while ON Energy will be drilling in Canje, Berbice. CGX will also be doing work offshore. We expect that Sadhna Petroleum Inc will be doing work in the Mahaicony area," the acting Commissioner said in an interview with this newspaper on Friday. CGX's offshore drilling is contingent on the outcome of the Guyana/Suriname border dispute.
Sadhna Petroleum is a Trinidadian exploration and drilling company which along with Groundstar Resources signed agreements with the Government of Guyana last year for the exploration of petroleum products and for the sharing of returns if the findings are in commercially viable quantities.
ON Energy Inc, a subsidiary of CGX Energy Inc, had pulled out of Guyana last year after drilling three wells and coming up dry.
Woolford said that in addition to these companies' efforts the GGMC on its own is conducting gas explorations in Leguan, Wakenaam and in the Pomeroon. He said the drilling follows various reports written on the possibilities of gas in some parts of the country. Recently the GGMC's geologists and other professionals did work on the island of Leguan in the Essequibo River. "We have established that a lot of what the reports said is true… we've uncovered gas and we're testing [to see possibilities for use]'" he said.
Speaking on prospects for gold exploitation, Woolford said there is a lot going on. Guyana Goldfields' aggressive exploration campaign is continuing, he said and there have been showings of gold recovered.
He said he anticipated that the company will be confirming that their exploits are feasible. "We know that they have been drilling deep. They have about six drills at a depth of 3,000 feet. There are also eight geologists onsite," Woolford said.
"That property, if all goes well, could be bigger than Omai," he said. He added that Strata Gold at Tassawini was also aggressively seeking gold and this was coming along well.
He said Sacre-Coeur has also accelerated efforts but the GGMC didn't have any direct reports on the potential size of the operation. Omai restarting operations after closure last year also looks promising, Woolford said.
Vannessa Ventures, Woolford said, was continuing to engage in exploration of Marudi Mountain during 2007. This company said no cyanide would be used in its gold production but a process of froth flotation.
"We have the chance within the next five years [to expand the gold industry]. We have three large gold mines (Guyana Goldfields, Sacre-Coeur and Strata Gold) in operation and if all goes well there will be [positive implications]," he said.
He said each one of these operations could absorb some 600 workers and the services that these would require would benefit service providers.