(TSX-V | OYL)
TORONTO, June 20, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or the "Company") today provided an operational update on its exploration assets in
Dewi Jones, Chief Executive Officer of the Company, commented: "We are
very pleased with the progress of all our activities thus far in 2014.
We continue to work towards drilling our next offshore exploration well
in Guyana and are still optimistic that a joint venture partner will be
secured prior to drilling."
Seismic Reprocessing and AVO Analysis
At the Company's 100% owned Corentyne petroleum prospecting licence (the
"Corentyne PPL") located offshore Guyana, the reprocessing and merging of the existing
seismic surveys is now complete. The Company continues to have a
technical data room available at its Houston offices and is working
towards farming out a portion of the Corentyne PPL to a joint venture
In addition to the completion of the seismic reprocessing of the
Corentyne PPL, a full elastic seismic inversion and AVO (Amplitude
Variation with Offset) has been completed and received from Vector
Seismic Data Processing, Inc., which has contributed significantly to
the risk assessment of the exploration prospects being considered for
the next drilling campaign in the Corentyne PPL.
The results of the reprocessing have assisted in confirming and
enhancing the geological assessment of the block. The Company has made
this information available in its data room and potential joint venture
partners are in the process of reviewing the data. While these AVO
analysis and results are subject to the uncertainties associated with
geophysical/geological modeling, the Company is encouraged by the
results and remains optimistic about a potential discovery of
hydrocarbons in the basin.
Rig Contract and Rig Sharing Agreement
CGX Energy is pleased to announce that it has 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 significantly 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 HAKURYU-12 rig, which is owned by BOT Lease Co., Ltd., is currently
under construction at the PPL Shipyard in Singapore and will be
mobilized to the first drilling site after completion in January 2015.
The main commercial terms of the rig contracts are as follows:
Rig Contract Parties:
Japan Drilling Co., Ltd.
CGX Resources Inc.
Rig Shareing Agreement Parties:
CGX Resources Inc.
Teikoku Oil (Suriname) Co., Ltd
Japan Drilling Co., Ltd.
Offshore Suriname and Guyana
Period of Contract:
One (1) firm well each (total operating days: 150 or more)
Estimated Commencement Time:
Day Rate Contract
Contract Signing Date:
June 19, 2014
In addition, CGX Energy and INPEX have agreed that INPEX shall drill the
first offshore well in Suriname in 2015.
Spud Date Extension
This week, 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 window.
Professor Suresh Narine, Co-Chairman of the Company, commented: "The
Company deeply appreciates the co-operation of the Government of Guyana
in granting to CGX Energy the spud date extension. The procuring of
the HAKURYU-12 drilling rig along with this extension significantly
enables the Company to address its work obligations under the Corentyne
PPL with confidence. CGX Energy, being one of the long standing
operators in the basin, is delighted to affirm its continued commitment
to Guyana and to exploration of the Guyana-Suriname Basin. The
Company's current drilling obligations tangibly demonstrate this
commitment, even as it is engaged in actively planning for the spudding
of its next well within the Corentyne PPL within the revised
CGX Energy has commenced the procurement process in order to complete
its 2014 work commitments on its 100% owned offshore Demerara petroleum
prospecting licence (the "Demerara PPL"). The Company continues to examine methods to reduce the costs
associated with the Demerara PPL's seismic survey and expects to be
able to share these costs with other companies operating in the
Dewi Jones, Chief Executive Officer of the Company, commented: "The
Company currently has a number of initiatives that it is rigorously
working on as it begins to fulfill its commitments in all three of its
PPLs. The Company continues to believe in the potential of the basin
and the discovery of hydrocarbons and also reaffirms its commitment to
the successful completion of its work programs."
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.
INPEX is the largest Japanese oil & gas exploration and production
company that ranks high among the mid-tier international oil and gas
E&P companies (independents). INPEX is currently carrying out more than
70 oil and natural gas projects across 28 countries, including two
large scale LNG project, Ichthys LNG Project in Australia and Abadi LNG
Project in Indonesia as the Operator. INPEX aims to become a top class
international oil & gas exploration and production company through
sustainable growth in the oil and gas development business. With
natural gas as the core of our business, INPEX will grow into an
integrated energy company by making contributions to a stable energy
supply to broader communities.
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.
SOURCE: CGX Energy Inc.
For further information:
Michael Galego, General Counsel and Secretary at (416) 843-3858 or email@example.com