Georgetown: CGX Energy on Thursday received from the Government of Guyana an extension to its work engagements on the Corentyne Block, offshore Guyana. The announcement was made this afternoon, by Co-Chairman of the oil Company, Professor Suresh Narine, at a press briefing at Cara Lodge.
Professor Narine stated that, “The company deeply appreciates the co-operation of the Government of Guyana, in granting the spud (drill) date extension to CGX Energy.”
He said the extension will cater for the company to “design and plan for the spudding of the next exploration well on the Corentyne Block.”
Professor Narine explained that CGX Energy Inc. was very encouraged with the recent discovery by ExxonMobil on the Stabroek Block, which is located a mere 120 miles offshore Guyana and quite adjacent to the Corentyne Block.
Dr Narine added that, “This is an exciting time for Guyana and the Guyanese people” as CGX Energy has been one of the longstanding operators in the basin. He stated that “CGX is delighted to affirm its continued commitment to Guyana and to the exploration of the Guyana-Suriname Basin.’
Dewi Jones, Chief Executive Officer of CGX Energy, also added to the occasion, stating via a written missive that, “The extension of CGX’s work commitment allows for the company to technically weigh how best to proceed with our drilling.”
He elaborated that they are currently investigating joint ventures to drill the next exploration well given the renewed interest in the Guyana-Suriname Basin.
According to the CEO, if CGX is not successful in attracting a suitable joint venture partner, the company will seek alternative financing structures in order to drill the next well and meet its work commitments in Guyana.
Officially, on June 18 2015, CGX Energy received the approval to extend its spud date deadlines on the Corentyne Block; the first, moving from October 31, 2015 to July 31 2016 (nine months); and the second, from November 27, 2016 to November 27, 2017 (12 months).
The Corentyne Block is owned 100% by the company, and according to Professor Narine, “CGX is not bothered by the border claims from Venezuela” deeming this “to have no material impact on the Company’s acreage offshore Guyana.”
These extensions will now allow the company to determine the best way forward, “given the very recent positive developments in the basin, related to the discovery of hydrocarbons.”
CGX Energy is a Canadian-based oil and gas exploration company, which is focused on the exploration of oil in the Guyana-Suriname Basin. It has been in the basin for some 18 years, thus far spending approximately US $350 Million the most by any competing company.
CGX overall holds three blocks in Guyana, the Corentyne, the Demerara and the Berbice, drilling already, two sets of wells, three offshore and three onshore. The offshore wells are Eagle (100%), Jaguar (25%), and Horseshoe (100%); onshore ones are all completed-Hermitage, Albion and Yakusari.
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