CGX Energy Inc today announced the settlement of the claims brought against Repsol Exploración, S.A. relating to the joint operating agreement governing the Georgetown Block offshore Guyana.
CGX had commenced arbitration proceedings against Spanish oil explorer Repsol in the London International Court of Arbitration and had secured an injunction against Repsol from the Supreme Court of Judicature here in January and August, 2014 over the farming out of the prospecting licence pertaining to the Block.
A statement from CGX said that under the terms of the Settlement, CGX Energy received approximately US$900,000 due to CGX Resources pursuant to the terms of the Georgetown Block agreement and neither party was responsible for costs or damages.
CGX said that Repsol has also agreed to evaluate opportunities in the Guyana-Suriname basin and Repsol was given a ninety-day option to present a farm-in proposal to acquire at least a 10% participating interest in any of the Corentyne Block (100%), Demerara Block (100%) or the Berbice Block (62%).
Further, CGX Energy and Pacific Rubiales Energy Corp. have been granted a similar option on the Kanuku Block.
CGX said that in the event that a proposal is accepted, any definitive agreements are subject to due diligence and the terms of any pre-existing petroleum agreement or joint operating agreement.
In August this year, CGX said that its injunction against Repsol Exploracion, S.A. from proceeding with the farming out of the Kanuku prospecting licence had been upheld by High Court here.
The erstwhile partners have been locked in a battle over the Kanuku licence.
In that press release, Dewi Jones, Chief Executive Officer of the Company, added: “Since 2012, CGX Energy has spent approximately U.S.$130 million in exploration in the Guyana-Suriname basin with approximately U.S.$40 million relating to the acreage now known as the Kanuku PPL. CGX’s total spend in the Georgetown PPL since inception has been approximately U.S.$60 million. Given the significant investment already made in this petroleum prospecting licence, we are hopeful that this matter will be resolved quickly in the best interest of all parties and for the overall benefit of the continued exploration in the basin.”
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin. It has been operating here since 2000.
