CGX ENERGY INC.
(TSX-V | OYL)
TORONTO, Sept. 22, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or the "Company") announced today that it has entered into a seismic contract with
Prospector PTE. Ltd. ("Prospector") to conduct a 3,116.74 km2 3D seismic survey on the Company's 100% owned Demerara Block, offshore
Guyana. The contract terms are attractive and represent one of the most
extensive 3D seismic studies ever conducted in this area.
The aggregate cost of this seismic survey will be approximately
U.S.$17.9 million with 40% of the costs (or approximately U.S.$7
million) being paid to Prospector by way of issuance of 15,534,310
common shares (the "Common Shares") in the capital of CGX Energy (the "Subscription") and the remainder payable in cash twelve months after the conclusion
of the seismic survey. Prior to the Subscription, Prospector did not
own any Common Shares and upon closing of the Subscription, Prospector
will own approximately 16.6% of the issued and outstanding Common
Shares. The Company expects the seismic survey to be completed within
approximately 60 days following mobilization.
Dewi Jones, Chief Executive Officer of the Company, commented:
"We are very pleased to have Prospector as a significant equity partner
in the Company. This transaction offers the Company the opportunity to
engage a world-class geophysical services firm while also preserving
cash in the short-term."
"The Guyana-Suriname Basin is an exciting new frontier that has
increasingly demonstrated the potential for hydrocarbons and is gaining
significant international exploration attention. By brining together
CGX Energy and Prospector, two companies with extensive experience in
frontier basins, we believe we are creating an opportunity for success
in this demanding region."
Prospector will deploy their modern 12-streamer 3D seismic
vessel (known as the "R/V BGP Prospector") that was specifically
constructed for serving the high-end 3D, 4D and wide azimuth marine
seismic survey market. The vessel is outfitted with ION's DigiSTREAMER
seismic data acquisition system. It has a solid gel design that reduces
the risk and noise during broad bandwidth data recording.
The Demerara Block is comprised of an area spanning 3,953 km2 in the highly prospective Guyana-Suriname Basin. The initial phase 1
work commitments are comprised of a 3D seismic survey consisting of a
minimum of 1,000 km2 and the associated processing and interpretation.
The 3D seismic survey will cover substantially all of the Demerara Block
and will provide detailed information on the reservoir distribution and
structural integrity of the current leads. Ultimately, this 3D seismic
survey will allow CGX Energy to better rank its prospects in the
Guyana-Suriname Basin and define future drilling locations.
Suresh Narine, Co-Chairman of the Company, commented:
"CGX Energy has an extensive exploration track record in Guyana. Once
again, we have illustrated our commitment to Guyana by significantly
exceeding the minimum work commitments on the Demerara Block."
The Common Shares issued to Prospector will be subject to a four month
hold period and 6,254,245 of such Common Shares will only be issued to
Prospector pending receipt of the final approval of the transaction
from the TSX Venture Exchange.
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.
Prospector is a marine seismic service company with state-of-art
equipment and experienced crew, having rich operation experience in
Africa and South America. Prospector's address is: Global House, 1
Ashley Avenue, Epsom, Surrey KT18 5AD, United Kingdom.
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.
Image with caption: "CGX Acreage Position in Guyana + Upcoming 3D Survey Outline on Demerara Block (CNW Group/CGX Energy Inc.)". Image available at: http://photos.newswire.ca/images/download/20140922_C9404_PHOTO_EN_42840.jpg
SOURCE: CGX Energy Inc.
For further information:
Michael Galego, General Counsel and Secretary at (416) 843-3858 or firstname.lastname@example.org