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CGX Releases New Prospective Resources Estimates by DeGolyer and MacNaughton for Corentyne Licence
(OYL - TSX-V) TORONTO, March 21, 2013 /CNW/ - CGX Energy Inc. (OYL - TSXV) ("CGX") an...
About this update from Cgx Energy Inc.
[{"type":"text","content":"\n\n\n\n\n\n(OYL - TSX-V)\n\n\nTORONTO, March 21, 2013 /CNW/ - CGX Energy Inc. (OYL - TSXV) (\"CGX\")\n announced today that an independent resources evaluation has been\n completed by DeGolyer and MacNaughton of Dallas, Texas, USA (\"D&M\") for\n six prospects on CGX's Corentyne Petroleum Prospecting Licence (\"PPL\")\n located offshore Guyana, South America (the \"Report\"). Using\n probabilistic analysis, D&M has estimated a total best estimate (P50)\n Prospective Resources, as of December 31, 2012, for six oil and gas\n prospects of 779 million barrels of oil, 743 million barrels of\n condensate, 6,943 billion cubic feet of sales gas plus 696 billion\n cubic feet of associated solution gas (see description of Prospective\n Resources below). The Report will be filed on CGX's website (www.cgxenergy.com).\n\n\n\"The work on our Corentyne PPL by DeGolyer and MacNaughton supports the\n merits of continued exploration in Guyana,\" stated Kerry Sully,\n President and CEO. \"If the estimate of gas resources were converted to\n oil on a 6:1 btu equivalence, and if the estimate of solution gas\n resources associated with the oil prospects were converted to sales gas\n assuming a 5% shrinkage, the arithmetic sum would be 2,664 million\n barrels of oil equivalent for best estimate of recoverable prospective\n oil and condensate plus sales gas resources. This is very close to the\n estimate for Corentyne of 2,510 million barrels estimate previously\n reported prior to the drilling of the wells. The Eagle Shallow Eocene\n prospect has been disproven, but re-interpretation of seismic plus\n incorporating recent well data has yielded five new prospects. The\n value per unit of risked resource will be lower given that half of the\n appraised product is now gas having lower commodity value than either\n oil or condensate, and the capital and operating costs will be\n significantly higher than previously estimated because of the very high\n pressures and temperatures encountered in last year's drilling.\"\n\n\nThe Report is limited to an estimate of the potential gross undiscovered\n oil, condensate and gas prospective resources in six prospects\n underlying the Corentyne PPL. This D&M Prospective Resources Evaluation\n supersedes all previous resource reports and incorporates all existing\n and new seismic information and well res...