April 30, 2008

CGX requests permit for Corentyne seismic - Guyana

Business News Americas

Canadian oil and gas company CGX Energy (TSXV: OYL) has applied for an environmental permit from Guyana's government to carry out seismic on its Corentyne offshore license, company CEO Kerry Sully said in a webcast.

"We believe approval is imminent", said Sully, adding CGX is in the final stages of negotiating a contract with a contractor to carry out the 3D seismic.

The work will cover 500 km2 and should be underway this northern hemisphere summer, the executive said.

In January, CGX reported US firm Gustavson Associates had completed an independent resource assessment for four Corentyne prospects. Gustavson calculated a total best estimate (P50) prospective resource in the four prospects to be 2.7 billion barrels of oil.

CGX continues with plans to bring on board a JV partner for Corentyne and also plans 1,000 km2 of 3D seismic on the Georgetown offshore license, Sully said.

CGX has a 25% stake in Georgetown and Spain's Repsol YPF (NYSE: REP) 75%.

The Canadian company's Guyana licenses cover 9.5 million acres gross (3.85 million hectares), 7.2 million acres net.