CGX raises more for Guyana oil search

Oil exploration company, CGX Energy Inc has raised US$23 million in its latest share offering which will be used to fund its capital programme offshore Guyana and for general corporate purposes.

The company, in a statement on Tuesday, announced that it has closed its previously announced offering of common shares at $0.90 per share. Pursuant to the Offering, CGX had issued 25 587 500 common shares of the Company for gross proceeds of $23 028 750 which included the full exercise of the over-allotment option.

The statement said that the Offering was led by Cormark Securities Inc. and included Canaccord Genuity Corp., Macquarie Capital Markets Canada Ltd., GMP Securities L.P. and Toll Cross Securities Inc. As compensation for their services in connection with the Offering, an aggregate underwriting fee of $1 381 725 was paid to the Underwriters by the Company. Completion of the Offering is subject to receipt by the Corporation of the final approval of the TSX Venture Exchange.

CGX intends to use the net proceeds of the Offering to fund CGX’s capital programme offshore Guyana and for general corporate purposes.

CGX, as part of a consortium involving Repsol, YPF Guyana Limited and Tullow Guyana BV plans to drill the Jaguar 1 oil well offshore Guyana starting April next year. The well will be the first drilled offshore since CGX’s abortive effort in 2000.

Following the drilling of the Jaguar 1 well, CGX is seeking to have another well drilled at its offshore Eagle location off the Corentyne coast.

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