Last Price

0.295

Change

+0.05

Open Price

0.28

Volume

9,350

Prev. Close

0.25

Regional News

July 23, 2006
Sadhna to start onshore oil exploration in September
Stabroek News

Commissioner of the Guyana Geology and Mines Commission (GGMC) Robeson Benn said Sadhna Petroleum Services Company Ltd, one of the two oil companies to sign agreements with the Government of Guyana in July last year, is to commence operations on the ground in September.

Speaking to this newspaper last week, the commissioner said the other company, Groundstar Resources, is still going through its ground gravity work with a view to determining the viability of operations. He said this ground work is being analysed before the company moves on to the next stage of their development.

Benn said ON Energy is in the process of refinancing with the aim of doing additional work in Guyana and said the company is in discussion with the GGMC. He said it is hoped that a ruling from the Arbitration Tribunal comes by June so that the exploration could move forward. That company had unsuccessfully explored for oil onshore in Berbice last year.

The Government of Guyana had in July signed an agreement with Groundstar Resources Inc, a subsidiary of Groundstar Resources Ltd of Canada , to prospect for oil in the interior of Guyana with a licence which is granted initially for up to four years. Similarly, an agreement was penned between the government and Sadhna for that company to explore for oil on the Corentyne Coast . Sadhna's licence is also for a period of up to four years.

The agreements which are based on provisions of the government's mining and petroleum policy are in accordance with petroleum legislation and this also provides for compliance with the provisions of Guyana's Environmental Protection Act.

Sadhna plans to commence petroleum exploration in a location not far from the former ON Energy Inc drill site at Yakusari, Corentyne Berbice. The contract area for Groundstar's licence includes the discovery area at the Karanambo No 1 well site in the Takutu Basin.

According to both agreements, rentals, fees and charges on an annual basis and a profit share of 50% in the event of a commercial discovery that leads to production, are some of the terms. Employment opportunities and purchase of goods and services are some of the other expected benefits when work activities commence.

Groundstar Resources Ltd is a junior oil and gas exploration and development company in pursuit of oil exploration and production in Guyana , Libya and other regions. Sadhna Petroleum Services Company Ltd is a Trinidadian firm incorporated in 1993 and specialising in oil exploration both off and onshore.

News

Dec 01, 2014

CGX Energy Announces Settlement Agreemen...

Nov 13, 2014

CGX Energy announces Kabukalli-1 Explora...

Presentations

Nov 24, 2014

Corporate Presentation - November 2014

Jun 25, 2014

2013 Annual General Meeting

CGX at a Glance