September 10, 2008

CGX to start seismic work later this month

Stabroek News

A seismic vessel will commence activities later this month on the Georgetown block and this will be jointly conducted with CGX’s 536 square kilometer 3D programme on the adjoining Corentyne Petroleum Pros-pecting Licence in which CGX has a 100% interest.

A CGX press release yesterday quoted President and CEO of CGX Kerry Sully as stating that, “Fugro-Geo’s seismic vessel ‘R/V Geo Pacific’ will begin activities late this September. These seismic activities will be jointly conducted with CGX’s previously announced 536 square kilometer 3D programme on the adjoining Corentyne PPL, in which CGX holds a 100% interest.”

According to the release, datelined Toronto, Sully said further that the combined programme will result in a 33% saving per square kilometer to CGX through economies of shared mobilization and longer sailing lines on the previously announced Corentyne programme. CGX’s share of the combined programme is estimated to be US$15.8M which will be funded by CGX from existing working capital.

CGX Energy Inc noted that YPF Guyana Ltd, a subsidiary of RepsolYPF acting as operator of the venture, has awarded a 1,650 square-kilometre 3D marine-seismic contract to the Fugro-Geo Team on the Georgetown Petroleum Pros-pecting Licence (PPL) offshore Guyana.

CGX Resources Inc., a wholly owned subsidiary of CGX, holds a 25% interest in the Georgetown PPL.

CGX also confirmed that the farm-out process that has been led by CGX’s agent Jeffries, Randall and Dewey of Houston, Texas has been put on hold during the 3D seismic period.

Referring to this, Sully said they were pleased that significant interest was generated in this joint venture process on CGX’s Corentyne PPL, but given that the 3D seismic acquisition is about to proceed on the Corentyne and Georgetown PPLs, CGX has put the farm-out process on hold until the 3D seismic data has been received and preliminary interpretation completed.

CGX, the Canadian-based oil and gas exploration company, is focusing on exploration for oil in Guyana. The company which has thousands of shareholders worldwide is financed internationally and managed by a team of experienced oil and gas and finance professionals from Canada, the USA and the UK. The seismic work follows a ruling in Guyana’s favour last year by the Hamburg, Germany-based International Tribunal on the Law of the Sea.