Given the steep decline in oil prices over the past months, Canadian oil explorer CGX Energy Inc has shelved plans for drilling on its Corentyne block for now and says its ability to continue as a going concern is dependent on additional financing being found.
“Given the steep decline in oil prices that has persisted over the last ten months, CGX Energy and its Board of Directors have determined that exploration drilling on the Corentyne Block offshore Guyana would not be prudent,” Dewi Jones, Chief Executive Officer of CGX said in a recent statement. The Government of Guyana in June had granted approved for CGX to extend its spud date deadlines on the Corentyne Block from October 31, 2015 to July 31, 2016 for the first commitment well and from November 27, 2016 to November 27, 2017 on the second commitment well. The company in a statement on August 28 thanked the government for affording it an extension of drilling commitments on the Corentyne Block until July 31, 2016.
The company, which has been engaged here since 2000 in the search for oil, also terminated its rig sharing agreement with Japan Drilling Co. Ltd (JDC) and Teikoku Oil (Suriname) Co.,
