(TSX-V | OYL)
TORONTO, July 30, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) announced
today the release of its unaudited consolidated financial results for
the quarter ended June 30, 2014, 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 2014 Overview and Highlights
Financial Results - The Company recorded net loss of $1,527,658 or $0.02 a share for the
three month period ended June 30, 2014, compared with $8,548,852 or
$0.13 a share for the same period in 2013.
Definitive Rig Agreement - In June 2014, the Company entered into a definitive rig agreement
with Japan Drilling Co., Ltd. for the provision of rig services. Under
the terms of the agreement, the Company has procured the use of the
jack-up drilling rig known as the "HAKURYU-12" rig. In an effort to
reduce drilling costs, the Company has simultaneously entered into a
rig sharing agreement with Teikoku Oil (Suriname) Co., Ltd., a
wholly-owned subsidiary of INPEX CORPORATION ("INPEX"). The Company plans to utilize this rig for the drilling of its
commitment well under the Company's Corentyne petroleum prospecting
licence ("PPL") in 2015.
Corentyne Block Update - In June, 2014, the Company received a five month extension to its
spud date deadline at the Corentyne PPL. The Government of Guyana
granted approval of an extension on the spud date on the first
commitment well from May 31, 2015 to October 31, 2015. The extension
was required to ensure that the HAKURYU-12 rig will have sufficient
time to arrive in Guyana prior to the commencement of the weather
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 PPL 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 PPL to expire and sought out a new
PPL covering virtually identical acreage offshore in Guyana, which is
now known as the Kanuku PPL. 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
PPL to RWE Dea AG or any other parties pending the hearing and
determination of the arbitration proceedings commenced by CGX against
Repsol. As of the date hereof, the injunction is still in place.
Strategic Partners and New Initiatives - With the assistance of Vector Seismic Data Processing Inc., the
Company has completed the reprocessing of the seismic data relating to
the Corentyne PPL and merged the existing seismic surveys. The Company
completed the re-interpreting of the seismic data to delineate a new
prospect on the Corentyne PPL with the assistance of Pacific Rubiales
Energy Corp. ("Pacific Rubiales") and its technical staff. CGX continues its initiatives to secure a
Joint Venture Partner for its Corentyne PPL. In the short term, the
Company will likely require additional financing and seek to widen its
shareholder base, but still with a view to negotiating farm-out
transactions as the primary way to enhance shareholder value.
Cost Cutting Initiatives: General and administration costs decreased by $1,648,024 to $362,839
in the three month period ended June 30, 2014 from $2,010,863 for the
same period in 2013. The Company continues to reduce general and
administrative costs leading up to the drilling of the next exploration
well at the Corentyne PPL.
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.
SOURCE: CGX Energy Inc.
For further information:
Michael Galego, General Counsel and Secretary at (416) 843-3858 or email@example.com