(TSX-V | OYL)
TORONTO, Nov. 29, 2012 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or the "Company") is pleased to announce that the Company has transitioned to a new Corentyne petroleum agreement ("Corentyne PA") and petroleum prospecting license ("Corentyne PPL") offshore Guyana effective as of November 27, 2012, renewable after four years for up to ten years. The new Corentyne PA applies to the former offshore portion of the Corentyne PPL, covering 6,212 square kilometres. The license is based on Guyana's revised specimen agreement but with terms and conditions similar to the former Corentyne PA. Under the terms of the new Corentyne PA, and during the initial period of four years, CGX has an obligation to drill two wells. Application has also been made by CGX for new PA's to be issued for the former Annex PPL, the onshore portion of the Corentyne PPL, and the Berbice PPL.
Kerry Sully, President and CEO, stated, "We are very pleased to be issued this new PA. It will allow us to start contracting services and supplies for Eagle Deep, the well we have planned to explore the Turonian in the Corentyne PA. Eagle Deep will be a High Pressure High Temperature (HPHT) well, similar to the Jaguar well drilled earlier this year in which CGX held a 25% participating interest. Although that well did not reach the target zone, much was learned that will benefit the drilling of Eagle Deep and other deep wells in the basin. Because of the long-lead time required for HPHT wells, drilling is forecast for the first quarter of 2014. A number of shallower prospects have also been identified using data from recent drilling and 3D seismic." In respect of the Georgetown PA, Kerry Sully added, "The application is in process under the direction of Repsol Exploración S.A. ("Repsol"), as operator, with the Government of Guyana and the contemplated farm-out of 5% of CGX's 25% interest in the Georgetown PA to Repsol announced on October 1, 2012 is no longer under consideration."
Professor Suresh Narine, Chairman, stated, "With this license, CGX will now aggressively continue its exploration of the exciting Guyana-Suriname basin. The commitment by the Company to the Government and people of Guyana and the basin has been unwavering over the past 14 years, during which time CGX has undertaken more exploration activity in the basin than any other company. We wish to thank the Government and the people of Guyana for their continued confidence in CGX and look forward to drilling at least two new wells in the Corentyne PA within the next four years, as part of our planned basin-leading exploration activity. In doing so, we aim to employ the best science and technology available to target the prospects identified, armed with significantly more knowledge of the basin's geology from the drilling of Eagle Shallow and the Jaguar-1 well."
About CGX Energy
CGX is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin, an area in which the United States Geological Survey estimated a Pmean oil resource potential of 13.6 billion barrels in their Assessment of Undiscovered Conventional Oil and Gas Resources of South America and the Caribbean, 2012. CGX is managed by a team of experienced oil and gas and finance professionals from Guyana, Canada, the United States and the 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 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.
The forward-looking statements are based on certain key expectations and assumptions made by CGX. Although CGX believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because CGX can give no assurance that 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 to other risks that may affect the forward-looking statements in this press release and those set out in CGX's management discussion and analysis of the financial condition and results of operations for the year ended December 31, 2011 and the six month period ended June 30, 2012 as well as the Company's Annual Information Form dated and filed on July 13, 2012.
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:
Kerry Sully, President and CEO
(604) 733-9647 or [email protected]
Charlotte May, Communications Manager
(416) 364-3353 or [email protected]