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CGX Energy Announces 3D Seismic Survey and Strategic Equity Investment with Prospector
CGX ENERGY INC. (TSX-V | OYL) TORONTO , Sept. 22, 2014 /CNW/ - CGX Energy In...
About this update from Cgx Energy Inc.
[{"type":"text","content":"\n\n\nCGX ENERGY INC.\n(TSX-V | OYL)\n\n\n\n\n\nTORONTO, Sept. 22, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) (\"CGX Energy\" or the \"Company\") announced today that it has entered into a seismic contract with\n Prospector PTE. Ltd. (\"Prospector\") to conduct a 3,116.74 km2 3D seismic survey on the Company's 100% owned Demerara Block, offshore\n Guyana. The contract terms are attractive and represent one of the most\n extensive 3D seismic studies ever conducted in this area.\n\n\nThe aggregate cost of this seismic survey will be approximately\n U.S.$17.9 million with 40% of the costs (or approximately U.S.$7\n million) being paid to Prospector by way of issuance of 15,534,310\n common shares (the \"Common Shares\") in the capital of CGX Energy (the \"Subscription\") and the remainder payable in cash twelve months after the conclusion\n of the seismic survey.  Prior to the Subscription, Prospector did not\n own any Common Shares and upon closing of the Subscription, Prospector\n will own approximately 16.6% of the issued and outstanding Common\n Shares. The Company expects the seismic survey to be completed within\n approximately 60 days following mobilization.\n\n\nDewi Jones, Chief Executive Officer of the Company, commented:\n\n\n\"We are very pleased to have Prospector as a significant equity partner\n in the Company. This transaction offers the Company the opportunity to\n engage a world-class geophysical services firm while also preserving\n cash in the short-term.\"\n\n\n\"The Guyana-Suriname Basin is an exciting new frontier that has\n increasingly demonstrated the potential for hydrocarbons and is gaining\n significant international exploration attention.  By brining together\n CGX Energy and Prospector, two companies with extensive experience in\n frontier basins, we believe we are creating an opportunity for success\n in this demanding region.\"\n\n\nProspector will deploy their modern 12-streamer 3D seismic\n vessel  (known as the \"R/V BGP Prospector\") that was specifically\n constructed for serving the high-end 3D, 4D and wide azimuth marine\n seismic survey market. The vessel is outfitted with ION's DigiSTREAMER\n seismic data acquisition system. It has a solid gel design that reduces\n the risk and noise during broad bandwidth data recording.\n\n\nThe Demerara Block is comprised of...