CGX Energy Inc. has entered into an agreement that may lead to the farm-out of 5% of its 25% participating interest in the Georgetown Block to Repsol Exploración S.A.
The agreement is subject to Government of Guyana approval. If approved, the revised interest, effective September 1, 2012, in the Georgetown Petroleum Prospecting License would be Repsol Exploración S.A. (20%) as operator, CGX Resources Inc. (20%), Tullow Oil plc (30%) and YPF Guyana Limited (30%).
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.
Press Release, October 2, 2012