CGX Provides Guyana Update; Shrs Fell 24% Thursday

By Midnight Trader, September 21, 2012, 07:58:02 AM EDT

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CGX Energy Inc. (OYL.V), which fell 24% Thursday, provided an update on activities that are being undertaken towards continued exploration on the company's Petroleum Prospecting Licenses in Guyana.

Kerry Sully, President and CEO stated: "CGX is negotiating agreements with third parties that may lead to farm-outs on one or more of the company's PPLs. Under one agreement, the company will receive minimum non-refundable payments of $4 million in consideration of granting the third party an opportunity to receive and analyze seismic and well data."

On the company's 25% held Georgetown PPL, CGX is pleased to report that the Government Information News Agency (GINA) issued a press release on September 18th indicating that "Directions have been issued to the Guyana Geology and Mines Commission's Petroleum Division to work with Repsol towards formalising arrangements to facilitate their seamless continuation in exploring the Georgetown Block. The current tenure for this section should expire in late November 2012."

The partners to the Georgetown PPL include Repsol Exploracion S.A. (15%), as operator, CGX Resources Inc. (25%), Tullow Oil plc (30%) and YPF Guyana Limited (30%). The company also confirms that formal applications have been submitted to the Government of Guyana for the re-issuance of its operated offshore and onshore PPLs.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing, Commodities

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