CGX Energy Files Year-End Audited Financial Statements
(TSX-V | OYL)
TORONTO, March 5, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or the "Company") announced today the release of its audited consolidated financial results for the year ended December 31, 2013, together with its Management Discussion and Analysis and Annual Information Form. These documents will be posted on the Company's website at www.cgxenergy.com and SEDAR at www.sedar.com.
Dewi Jones, Chief Executive Officer of the Company, commented: "2013 was a transitional year for CGX Energy. Now that we have secured the renewal on our petroleum prospecting licences, we are looking forward to 2015 and commencement of our exploration and drilling campaigns. We continue to attract interest from potential joint venture partners and hope to work alongside our major shareholder, Pacific Rubiales Energy Corp., to develop our substantial Guyana offshore and onshore acreage."
2013 Year-end Overview and Highlights
- Memorandum of Understanding ("MOU") - subsequent to year end, the Company entered into an MOU with Teikoku Oil (Suriname) Co., Ltd., a wholly-owned subsidiary of Inpex Corporation ("INPEX") and Petronas Suriname E&P B.V (PSE - PBV) ("PETRONAS"), for rig sharing in the Guyana-Suriname basin. The parties agreed to form a group for rig sharing ("Rig Sharing Group") and will enter into a definitive agreement with respect to the rig share and related support services among the Rig Sharing Group with a view to minimizing their exploration costs by sharing, where practical, rig procurement and related support services for their respective drilling programs. The Company plans to utilize this rig for the drilling of its commitment well under the Company's Corentyne petroleum prospecting licence ("Corentyne PPL").
- Successful injunction against Repsol - In December 2013, the Company commenced arbitration proceedings against Repsol Exploracion, S.A. ("Repsol") in connection with the expiry of the petroleum prospecting license covering the Georgetown Block. The Company is of the view that the terms of the joint operating agreement governing the Georgetown Block were still in effect when Repsol allowed the Georgetown petroleum prospecting licence ("Georgetown PPL") to expire and sought out a new petroleum prospecting license covering virtually identical acreage offshore in Guyana, which is now known as the Kanuku petroleum prospecting license. Furthermore, Repsol was aware of CGX's continued interest in the Georgetown PPL and had an obligation to seek renewal of the Georgetown PPL alongside CGX. In January 2014, CGX obtained an injunction order from the Commercial Court of Guyana restraining Repsol from proceeding with the 30% farm-out of the Kanuku petroleum prospecting license to RWE Dea AG pending the hearing and determination of the arbitration proceedings commenced by CGX against Repsol.
- Cost Cutting Initiatives - The Company has reduced all non-essential purchases and travel to preserve cash resources. The Company will continue to evaluate further cost cutting initiatives and is determined to keep general and administrative costs at current or lower levels going forward. During the fourth quarter, CGX continued to focus on cost cutting initiatives in order to reduce the size of the Company to better reflect current operations. As a result of these initiatives, the Company's general and administrative costs have decreased by approximately 30% on a per month basis, since April, 2013.
- Strategic Partners and New Initiatives - The Company is in the process of re-interpreting seismic data to delineate a new prospect on the Corenytne PPL with the assistance of Pacific Rubiales Energy Corp. ("Pacific Rubiales") and its technical staff. The reprocessing is expected to be completed in April 2014. In the short term, the Company will likely require additional equity financing and seek to widen its shareholder base with a view to longer term farm-out transactions to enhance shareholder value. The Company has also entered into a master data processing agreement with Vector Seismic Data Processing, Inc. for the reprocessing and merging of seismic surveys relating to the Corentyne petroleum prospecting licence. The reprocessing is expected to be completed by April, 2014.
About CGX Energy
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur in the future. These forward-looking statements are based on certain key expectations and assumptions made by CGX Energy. CGX Energy believes the expectations and assumptions on which it develops forward-looking statements are reasonable; however, undue reliance should not be placed on forward-looking statements as there can be no assurance they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition, other risks that may affect the forward-looking statements in this news release are outlined further in the Company's Annual Information Form dated March 5, 2014 filed on SEDAR at www.sedar.com.
The forward-looking statements contained in this news release are made as of the date hereof and CGX Energy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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