Oil exploration company CGX on Tuesday announced that it had completed a deal which allows it to proceed with the financing of several wells offshore Guyana.
In a Marketwire statement CGX said it has closed its previously announced offering of common shares at US$0.70 per share. Pursuant to this offering, CGX had issued 131,445,000 common shares of the Company for gross proceeds of US$92,011,500. It said the offering was led by Cormark Securities Inc. and included GMP Securities L.P., Canaccord Genuity Corp., Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Toll Cross Securities Inc.
Stephen Hermeston, President and CEO stated, “This financing provides CGX with the necessary funding for its share of the expected costs for two wells offshore Guyana – the Jaguar-1 well on our 25% owned Georgetown Petroleum Prospecting License (“PPL”) and the Eagle-1 well on our 100% owned Corentyne PPL. It will also allow us to prepare for a second well on the Corentyne PPL and to further develop our exploration portfolio with ongoing studies. We will continue to pursue joint venture partners, but are no longer dependent on them to complete the next two wells.”