(TSX-V | OYL)
TORONTO, March 11, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or the "Company") announces that the Pomeroon Petroleum Agreement (PA) expired effective November 19, 2012.
The Pomeroon PA was issued to Century Guyana, Ltd. in November 1997 and was purchased by CGX in January 2004. As has been reported since 2007, the Company has been in discussions with the Government of Guyana regarding modification of the Pomeroon PA that would have extended the PA to November 2013. During these discussions the Company was advised that the November 1997 Pomeroon PA reverted to the Government effective November 19, 2012. Additionally, the Company's Georgetown PA expired November 25, 2012, as disclosed in the 2012 third quarter financial statements. The costs associated with these licenses as at September 30, 2012 was approximately $2 million in relation to the Pomeroon PA and $51 million in relation to the Georgetown PA.
As a result of these licenses having expired in November 2012 and the Company's current uncertainty relating to these licenses, the Company may record an impairment of the full carrying amounts in its year end 2012 financial statements. In the event that the Company secures the renewal of the licenses, the Company will revisit any impairment previously recorded.