Business
CGX Energy Announces Bridge Loan and Operational Update
(TSX-V | OYL) TORONTO , Oct. 10 ,  2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("...
About this update from Cgx Energy Inc.
[{"type":"text","content":"\n\n(TSX-V | OYL) \n\n\n\nTORONTO, Oct. 10,  2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) (\"CGX Energy\" or the \"Company\") announced today it entered into a bridge loan agreement (the \"Bridge Loan\") with Pacific Rubiales Energy Corp. (\"Pacific Rubiales\") in the aggregate principal amount of Cdn.$7.5 million and provided an operational update on its activities in Guyana. \n\nBridge Loan \n\nDewi Jones, Chief Executive Officer of the Company, commented: \"The Bridge Loan allows CGX Energy to continue discussions with potential joint venture partners and also commence purchasing long lead items required to drill our next exploration well on the Company's 100% owned Corentyne Block, offshore Guyana.\"\n\nThe Bridge Loan has a term of twelve months and annual interest payable of 5%. The net proceeds of the Bridge Loan will be used to cover certain expenses generated in Guyana in connection with its work commitments in Guyana.\n\nThe Bridge Loan is considered a \"related party transaction\" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), but is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the transaction is less than 25% of the Company's market capitalization.  The Company did not file a material change report more than 21 days before the closing of the Bridge Loan as required by MI 61-101 as the details of the Bridge Loan were settled only recently.\n\nOperational Update\n\nDemerara Block\n\nAs previously announced, the Company has entered into a seismic contract with Prospector PTE. Ltd. (\"Prospector\") to conduct a 3,116.74 km2 3D seismic survey on the Company's 100% owned Demerara Block, offshore Guyana. The seismic survey commenced on and is expected to be completed in approximately 60 days.  After the completion of the survey, Prospector will have been issued common shares (\"Common Shares\") in the capital of the Company representing approximately 16.6% of the Company.\n\nJoint Venture Update and Corentyne Exploration Well Planning\n\nThe Company continue to work with the technical team at Pacific Rubiales to secure a joint venture partner on the Company's 100% owned Corentyne Block, offshore Guyana. The Company expects to spud the exploration w...