CGX Energy Inc. has announced that the Government of Guyana has issued two new petroleum prospecting licenses, one to CGX Resources Inc., a wholly owned subsidiary of CGX and one to ON Energy Inc. (“ON Energy”), a 62% owned subsidiary of CGX, both effective as of February 12, 2013 and renewable after four years for up to ten years.
The new Demerara petroleum agreement (“Demerara PA”) and petroleum prospecting license (“Demerara PPL”) applies to the former offshore portion of the Annex PPL, covering 3,975 square kilometres, which was a subset of the Company’s original Corentyne Petroleum Agreement. Under the terms of the new Demerara PA, and during the initial period of four years, CGX has an obligation to conduct a 3D seismic survey comprising a minimum of 1,000 square kilometres and to drill one exploration well.
The new Berbice petroleum agreement (“Berbice PA”) and petroleum prospecting license (“Berbice PPL”) applies to the former Berbice license comprising 1,566 square kilometres (971 square kilometres net) and the former onshore portion of the Company’s original Corentyne Petroleum Agreement comprising 1,729 square kilometres (1,072 square kilometres net) for total onshore acreage of 3,295 square kilometres. Under the terms of the new Berbice PA and during the initial period of four years, ON Energy has an obligation to conduct an airborne survey comprising a minimum of 1,000 square kilometres and either conduct a 2D seismic survey comprising a minimum of 100 square kilometres or drill one exploration well.
Kerry Sully, President and CEO, stated, “CGX has identified leads on the Demerara PA that will require 3D seismic to enhance to prospect status. The licence straddles a portion of the current continental shelf and is updip from a 3D seismic program recently shot by Exxon and Shell in the adjoining Stabroek PA. On the Berbice PA, the main exploration targets are stratigraphic traps similar to the Tambaredjo and Calcutta heavy-oil fields onshore Suriname. Staatsolie Maatschappij Suriname N.V. estimates original oil-in-place of more than a billion barrels in these fields, with remaining proved reserves at the end of 2011 of 77 million barrels after 30 years of production.”
Professor Suresh Narine, Executive Chairman, stated, “The issuance of the new Demerara PPL and Berbice PPL by the Government of Guyana to CGX is a further endorsement of the important role CGX plays in a realization of the petroleum potential of the Guyana Suriname basin. On behalf of our shareholders, management, staff and board, I would like to thank the Government and people of Guyana for their continued confidence in CGX, the Company that has been the most active explorer in Guyana over the last 15 years. Our acreage position in the basin on the Corentyne PA issued in November 2012 and these new licenses positions CGX with a diversity of exciting prospects which means we will be aggressively engaged in the basin for some time to come.”
Press Release, February 15, 2013