Business
CGX Energy Enters into Settlement Agreement and welcomes Japan Drilling as a Significant Shareholder
CGX Energy Enters into Settlement Agreement and welcomes Japan Drilling as a Significant S...
About this update from Cgx Energy Inc.
[{"type":"text","content":"\n\n\n\nCGX Energy Enters into Settlement Agreement and welcomes Japan Drilling as a Significant Shareholder\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nCGX Energy Enters into Settlement Agreement and welcomes Japan Drilling as a Significant Shareholder\nCanada NewsWire\nTORONTO, Jan. 21, 2016\n\n\n\n(TSX-V | OYL)\n\n\n\nTORONTO, Jan. 21, 2016 /CNW/ - CGX Energy Inc. (\"CGX Energy\" or the \"Company\") announced today that the Company and CGX Resources Inc. (\"CGX Resources\") have entered into a definitive settlement agreement (the \"Settlement Agreement\") with Japan Drilling Co., Ltd. (\"JDC\") with an effective date of November 30, 2015. \n\n\"We are pleased to have JDC as a significant shareholder in the Company and look forward to working with them in the future,\" said Dewi Jones, Chief Executive Officer of the Company.  \"We are grateful to JDC for their continued support of the Company through this period of depressed oil prices.\"\n\nOn June 19, 2014, CGX Resources, a wholly-owned subsidiary of the Company, entered in to: (i) a drilling rig agreement (the \"Drilling Agreement\") with JDC for the use of JDC's HAKURYU-12 drilling rig (the \"Rig\"). As previously announced, on August 28, 2015, CGX Energy, CGX Resources and JDC entered into a settlement term sheet whereby the parties agreed to terminate the Drilling Agreement and settle amounts owing to JDC in the amount of U.S.$20.35 million (the \"JDC Payable\") in exchange for the issuance of 16,522,500 common shares in the capital of CGX Energy (the \"Settlement Shares\") and the deferral of the JDC Payable in the amount of U.S.$14.85 million. The parties subsequently entered into the Settlement Agreement in respect of the issuance of the Settlement Shares and the settlement of the JDC Payable. Pursuant to the terms of the Settlement Agreement, the parties agreed that the JDC Payable shall be settled as follows: (i) U.S.$500,000 by December 1, 2015 (the \"First Payment\"); (ii) U.S.$7.18 million by March 25, 2016; and (iii) U.S.$7.18 million by June 15, 2016. CGX Energy has paid U.S.$100,898.63, repres...