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CGX Energy Inc V.OYL

Alternate Symbol(s):  CGXEF

CGX Energy Inc. is a Canada-based oil and gas exploration company. It is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana. The Company, through one of its subsidiaries, holds an interest in a Petroleum Prospecting Licence (PPL) and related Petroleum Agreement (PA) on the Corentyne block in the Guyana Basin, offshore Guyana. The Company, through its subsidiary Grand Canal Industrial Estates, is constructing the Berbice Deep Water Port. This facility, located on the eastern bank of the Berbice River, adjacent to and north of Crab Island in Region 6, Guyana, is being constructed on 30 acres with 400 m of river frontage. Its subsidiaries include CGX Resources Inc., GCIE Holdings Limited and CGX Energy Management Corp. It is the operator of the Corentyne block and holds a 27.48% working interest. Its Wei-1 exploration well is located west of the Kawa-1 discovery in the northern region of the Corentyne block.


TSXV:OYL - Post by User

Bullboard Posts
Comment by deepthinkon Nov 25, 2011 10:02pm
405 Views
Post# 19269109

corentyne ppl terms

corentyne ppl termsIt is worth reading the discussion of the Petroleum Prospecting License terms in the PP prospectus. CGX loses its PPLs if it doesn't meet the minimum work requirements, which involves spudding wells. The Corentyne license requires a well to be spud this year; and another in the not too distant future. So job #1 for CGX is ensuring that it doesn't lose the PPL, and this required CGX to make whatever deal it could to generate the financial resources to pay for a well. My understanding from the Pescod-Sully interview is that Sully is expecting a rig at Eagle in the very near future. In any case, it seems likely to me that CGX would at least need to contract a rig in order to be eligible for an extension.
Bullboard Posts