(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.
Forward-Looking Statements:
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.