CGX poised to make a comeback come 2015 – to resume drilling offshore Corentyne by October
AFTER spending over US$71M on drilling the Eagle-1 Well offshore Corentyne and losing it all by coming up dry in 2012, CGX Energy Inc. has announced that it is well poised to go for oil again in the same area next year.
Making the announcement via an end-of-year statement, Company Chief Executive Officer, Dewi Jones said:
“2014 was a transformation year for the Company, as we continued our exploration offshore in Guyana. As we move into 2015, we are very encouraged by the recent discoveries in Senegal and the heightened level of exploration activity in the Guyana-Suriname Basin.
“There will be at least two offshore wells drilled prior to our next exploration commitment well on the Corentyne Block, and we expect upwards of 10 wells being drilled in the basin in 2015 and 2016.”
Jones disclosed that since April 2013, the CGX has been able to significantly cut monthly general and administrative expenses from approximately $700,000 per month to just above $300,000 per month while continuing to meet its work commitments in Guyana.
The Company had also settled, in its favour, the claims brought against Repsol ExploraciÓn, S.A. (“Repsol) relating to the joint operating agreement governing the Georgetown Block.
In an amicable settlement, Repsol was given a 90-day option to acquire at least a 10% participating interest in either the Corentyne Block (100% owned by CGX); the Demerara Block (100% owned by CGX); or the Berbice Block (62% owned by CGX).
Repsol will attend the Company’s offices in early January to commence due diligence for the desired partnerships, Jones said.
Jones also recalled that in June 2014, CGX and Teikoku Oil (Suriname) Co., Ltd., a wholly-owned subsidiary of INPEX Corporation (“INPEX), had formed a rig-sharing group and procured the jack-up drilling rig, known as the “Hakuryu-12″ rig from Japan Drilling Co.
Under the terms of the rig-sharing agreement, INPEX will use the Hakuryu-12 rig to drill a well offshore Suriname during the second quarter of 2015, prior to the Company’s offshore exploration well on the Corentyne Block.
Jones disclosed that the CGX expects to spud its well (start drilling in oil exploration parlance) at the Company’s 100% owned Corentyne Block, located offshore Guyana, by October 2015.
The Company has already procured helicopter services for this spud, and has also completed a shallow-hazard survey in order to acquire seabed and drilling-hazard information.
With respect to its Demerara Block holdings, CGX Energy recently completed a new 3D seismic survey on its 100%-owned offshore Demerara Block, and expects the results of the seismic reprocessing to be available by the end of second quarter 2015.
With the completion of this survey, the Company now has more than 3,100 km2 of 3D data on the block.
And with respect to its Berbice Block, in November 2014, CGX Energy announced it was moving forward with its Initial Period, Phase I commitment on the Berbice Block by acquiring, processing and interpreting 3,000 line-kilometers of airborne geophysical data.
CGX Energy contracted Sander Geophysics Ltd. to perform the airborne gravity and magnetic survey. This survey will provide CGX Energy with additional data necessary to optimally position its 2D seismic survey, which will likely take place in January 2015.
The Berbice petroleum prospecting licence governing the block is held by ON Energy Inc., which is 62% owned by CGX Energy. --- (By Clifford Stanley)
