After a brutal day yesterday, when CGX Energy (OYL.V) dipped to
levels not seen since Sept 2003, the shares are up 7.5% near
midday, to 37 cents.
More than 3.1 million shares have changed hands.
CGX Energy announced yesterday the results of the drilling of
the Eagle-1 well on the Company's 100% owned and operated Corentyne
Petroleum Prospecting License (
), offshore Guyana. The Eagle-1 well reached total depth of 4,328
metres on April 25th. During drilling, the Eagle-1 well encountered
oil and gas shows through the objective Eocene and Maastrichtian
geologic zones and at the, yet to be confirmed, Oligocene zone
indicating an active petroleum system where generated hydrocarbons
have migrated through the pre-Miocene section drilled by the well.
Additional open hole logs were necessary to determine the nature of
the fluids in those zones. Hence, CMR (combinable magnetic
resonance) and MDT (modular formation dynamics) were run and both
logs identified the presence of good quality sandstone reservoirs
that unfortunately proved to be water bearing.
The Eagle-1 well was initially budgeted for 60 days of drilling
but experienced weather delays and mechanical issues which extended
operations for approximately an additional 30 days. The initial
cost estimate for the Eagle-1 well was $55 million, however with
the delays the Eagle-1 well is now estimated to cost $71 million.
As a result, the Company will need to raise approximately $20
million in the near term.
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