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CGX Energy Announces Resequencing of its Work Programme in Guyana and Second Quarter Results
Toronto, Ontario--(Newsfile Corp. - August 2, 2019) - CGX Energy Inc. (TSXV: OYL) (" CGX Energ...
About this update from Cgx Energy Inc.
[{"type":"text","content":"CGX Energy Announces Resequencing of its Work Programme in Guyana and Second Quarter ResultsToronto, Ontario--(Newsfile Corp. - August 2, 2019) - CGX Energy Inc. (TSXV: OYL) (\"CGX Energy\" or the \"Company\") announced today that a resequencing of its work programme in the Corentyne block, held by its wholly owned subsidiary CGX Resources Inc. (\"CRI\"), has been approved by means of an addendum to its Corentyne Petroleum Agreement by the Government of the Cooperative Republic of Guyana. CRI and Frontera Energy Guyana Corp. (\"FEGC\") are joint venture partners in the block.Initially, the Company intended to drill one exploration well on the Corentyne block and then follow that up with seismic processing, as disclosed under the \"Use of Available Funds\" section of the Company's rights offering circular dated February 1, 2019. At that time, the Company intended to use $11.2 million from the rights offering to drill the Utakwaaka well on the Corentyne block by November 27, 2019. However, the Company will instead now utilize these funds to complete a seismic survey over the northern region of the Corentyne block by November 27, 2019 and the remaining balance of funds for the Company's resequenced exploration well to be drilled by November 27, 2020 on the Corentyne block. This resequencing will not change the Company's overall work commitment on the Corentyne block, and may also involve other related projects, but should better position the Company in the long-term.The benefit of the resequenced work program, which allows seismic assessment to be conducted over the northern region of the Corentyne block before drilling of an exploration well is that it will allow the Company to gain a more complete technical understanding of the Corentyne block and in particular its northern sector. Given recent large discoveries in an adjacent block, which provides a strong indication that hydrocarbons have migrated into the northern region of the Corentyne block, this seismic assessment will allow CRI to more comprehensively evaluate the hydrocarbon potential of the Corentyne block and help it assess whether it first drills the Utakwaaka well or another well located in the northern region of the block. This may mean that certain prior agreements that the Company has entered into may need to be revised, but this is expected to be in the Company's...