NOV-08-2012: PRE CONFERENCE CALL Just listened to PRE's conference call and question came up that related to PRE's investment in CGX. PRE comments are below. Note - the below has been paraphrased to account for my slow typing skills:
CGX was an excellent way for PRE to get into a very prolific basin. Instead of PRE going directing into Guyana to invest...we believed investing in CGX was the best way for PRE to participate in exploring offshore Guyana. Namely the large acreage position CGX has is very attractive to us. So, it made sense for us to invest directly into CGX. CGX has a very good position offshore Guyana.
In addition, PRE believes it has an understanding of the Guyana Basin. PRE's management has previous experience drilling offshore Venezuela (there are similarities between Venezuela and Guyana Basins). Specifically, PRE's management had drilled 7 wells offshore Venezuela (focusing on a exploring 'bright spots' and positive AVO prospects). 5 of the 7 wells PRE's management was involved in were successful. So, PRE believe they are familiar with this offshore Venezuela basin and hope to take that expertise and apply it to the Guyana offshore basin.
The eastern portion of the CGX blocks have some very good prospects and big structures. PRE is very excited about shallow water prospectively in these blocks.
In terms of prospectively and other details - PRE said they would not say anything further at this time.