“Excited” CGX seeking capital to continue drilling for oil

By Jomo Paul

[www.inewsguyana.com] – Canada-based oil exploration giant, CGX Energy says it is excited by the recent discovery of hydrocarbons by ExxonMobil and is pushing ahead with its plans to drill in the Corentyne Block.

CGX however is  now looking to secure capital to finance this project. Co – Chairman of the Company, Professor Suresh Narine told a gathering at a Cara Lodge  on Friday, June 19 that given the recent pronouncements made by ExxonMobil, as it relates to oil, CGX is now looking to intensify its operations in the Corentyne Block which is adjacent to the Stabroek Block.

In this regard it was pointed out that the government of Guyana has recently granted the company a “spud date extension”effective June 18, 2015 on the first commitment well from October 31, 2015 to July 31, 2016 along with an extension to the spud date deadline on the second commitment well from November 27, 2016 to November 27, 2017. 

These extensions were granted to allow the Company to determine how best to explore the acreage given recent positive developments in the basin related to the discovery of hydrocarbons.

According to Narine, “this will allow us the time to design and plan for the spudding of the next exploration well on the Corentyne Block as we are very encouraged by the recent discovery by ExxonMobil on the Stabroek Block located approximately 120 miles offshore Guyana and immediately adjacent to the Corentyne Block.  CGX Energy, being one of the longstanding operators in the basin, is delighted to affirm its continued commitment to Guyana and to exploration of the Guyana-Suriname Basin.  This is an exciting time for Guyana and the Guyanese people.”

Meanwhile, to achieve its goal of drilling for oil and with daily operational costs topping US$700,000, Narine related that the CGX is poised to spend just over $US320M over the next few years.

This money will of course be provided by investors who are interested; as such local entrepreneurs and persons with “disposable” capital are being urged to take the opportunity to buy shares in the oil company, which as pointed out by Narine, will be rewarding.

Chief Executive Officer of the Company, Dewi Jones, commented: “The extension on our work commitments allows the Company to technically weigh how best to proceed with our drilling campaign. We are currently investigating joint ventures to drill the next exploration well given the renewed interest in the Guyana-Suriname Basin.  However, in the event we are not successful in attracting a suitable joint venture partner, the Company will seek alternative financing structures in order to drill the next well and meet its work commitments in Guyana.”

The Company also announced that it does not view the border claims by Venezuela to have a material impact on its acreage offshore Guyana.

In addition to the Corentyne Block, CGX also owns the Demerara and Berbice Blocks which are both prospects for oil.