Georgetown: Guyana Government repossessed two concessions granted to CGX Energy Inc, (CGX). CGX in a statement today stated its 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. Additionally, the company's Georgetown PA expired November 25, 2012.
CGX ran into financial problems after two offshore wells…one off Corentyne and another off Georgetown… came up dry last year. The Corentyne concession was fully owned by CGX while the Georgetown block was a partnership drilling with Repsol.
CGX ended up owing Repsol Exploración S.A some US$15M, representing its stakes in the operating expenses to hire a rig, among other things.
According to CGX, in relation to the Pomeroon PA, its expenses to date are US$2M while US$51M was spent for its Georgetown PA.
Recently, CGX announced that after being faced with enforcement proceedings by Repsol who wanted its money, CGX managed to enter an agreement with GMP Securities L.P. (“GMP”) in connection with a proposed private placement of a minimum of Cdn$35M.
According to CGX, approximately US$15M will be used to meet the company’s current default payment obligations owing to Repsol Exploración S.A. (“Repsol”), Tullow Guyana B.V. and YPF S.A. who were all partners of the Georgetown well.
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