(TSX-V | OYL)
TORONTO, July 23, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) announced
today the release of its unaudited consolidated financial results for
the quarter ended June 30, 2013, together with its Management
Discussion and Analysis. These documents will be posted on the
Company's website at www.cgxenergy.com and SEDAR at www.sedar.com.
Second Quarter 2013 Overview and Highlights
CGX Energy reported a net loss of loss of $8,548,852 or $0.13 per share
for the three month period ended June 30, 2013, compared with a net
loss of $94,093,285 or $2.88 a share for the same period in 2012.
Cost Cutting Initiatives: With the exception of items relating to the special committee process
that was undertaken and the change of control payments made due to the
investment by Pacific Rubiales Energy Corp. ("Pacific Rubiales"), the Company's general and administration costs decreased in the
second quarter due to a reduction in all non-essential purchases and
travel. 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. As at June 30, 2013, the Company's working capital increased to
$13,361,347 from a working capital deficiency of $12,650,761 as at
December 31, 2012.
Private Placement Financing: On April 26, 2013, the Company closed a brokered private placement
raising CDN $37,008,900 by issuing 37,008,900 post-consolidation units
(the "Units") at a price of CDN $1.00 per Unit. Each Unit was comprised of one
post-consolidation common share in the capital of the Company and one
post-consolidation common share purchase warrant. Each
post-consolidation common share purchase warrant entitles the holder
thereof to acquire one post-consolidation common share at any time
until April 26, 2018 at an exercise price of CDN $1.70. In connection
with the private placement, the Company's board of directors and its
senior management team have been changed.
Share Consolidation: At the Company's Annual and Special Meeting of shareholders held on June
26, 2013, the shareholders approved a consolidation of its issued and
outstanding common shares, warrants and options on a basis of 10
pre-consolidated shares, warrants or options for each
post-consolidation share, warrant or option. On July 11, 2013, the
Company filed articles of amendment to complete this consolidation.
Strategic Partners and New Initiatives: As of March 19, 2013 and effective December 31, 2012, an Independent
Resources Evaluation was completed by DeGolyer and MacNaughton of
Dallas, Texas, USA (the "D&M Report"). In the D&M Report, the total best estimate (P50) of Prospective
Resources for six oil and gas prospects within the Corentyne PA are 779
MMbbl of oil, 743 MMbbl of condensate, 6,943 Bcf of sales gas plus 696
billion cubic feet of solution gas. The Company is now in the process
of re-interpreting seismic data to define the next prospect to be
drilled on the Corenytne PPL with the assistance of Pacific Rubiales
and its technical staff. In the short term, the Company will likely
require additional equity financing and will seek to widen its
shareholder base with a view to longer term farm-out transactions to
enhance shareholder value.
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 press 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. CGX 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 press release are outlined further in the Company's Annual
Information Form dated June 10, 2013 filed on SEDAR at www.sedar.com.
The forward-looking statements contained in this press release are made
as of the date hereof and CGX 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.
Readers should give attention to the estimates of individual classes of
resources and appreciate the differing probabilities of recovery
associated with each class. Estimates of remaining recoverable
resources (unrisked) include Prospective Resources that have not been
adjusted for risk based on the chance of discovery or the chance of
development and Contingent Resources that have not been adjusted for
risk based on the chance of development. It is not an estimate of
volumes that may be recovered. Actual recovery is likely to be less
and may be substantially less or zero.
Prospective Resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Prospective Resources have both an associated chance of discovery and a
chance of development. Prospective Resources are further subdivided in
accordance with the level of certainty associated with recoverable
estimates, assuming their discovery and development, and may be
sub-classified based on project maturity. There is no certainty that
any portion of the resources will be discovered. If discovered, and
they would be technically and economically viable to recover; there is
no certainty that the Prospective Resource will be discovered. If
discovered, there is no certainty that any discovery will be
technically or economically viable to produce any portion of the
SOURCE: CGX Energy Inc.
For further information:
Suresh Narine, Co-Chairman at (705) 933-8389 or email@example.com
Michael Galego, General Counsel and Secretary at (416) 843-3858 or firstname.lastname@example.org