CGX renegotiates oil exploration plan with gov’t

-well to be drilled by November, 2019

Canadian oil explorer, CGX today announced that it had renegotiated its work plan with the Guyana Government which would see an offshore exploration well being drilled in the Corentyne block by November 27, 2019 and it has also agreed to surrender acreage from two blocks.

In a statement from Toronto, Canada, CGX said that as part of the renegotiation  of the Demerara, Corentyne and Berbice Petroleum Prospecting Licences with the government, the Company has also agreed to relinquish 25% of the acreage of both the Corentyne and Demerara blocks to the Government of Guyana.

CGX had been one of the early explorers in the Guyana-Suriname oil basin. Its drilling in 2000 of an offshore well led to its rig being chased away by the Suriname military. This sparked a diplomatic dispute which was largely settled in Guyana’s favour at the International Law of the Sea Tribunal in Hamburg, Germany. CGX drilled several wells offshore thereafter but did not find oil in commercial quantities. It also attempted several wells on land in Berbice.

Professor Suresh Narine, Chairman and Executive Director (Guyana) commented: “CGX Energy thanks the Government of Guyana for its continued partnership and support; we as a company are eager to pursue the new work commitments in this exciting Guyana basin, and in so doing continue our unbroken commitment to the basin, the Guyanese people and its Government for more than 18 years.”

 

The new work commitments are:

Corentyne Block
  • drill an exploration well by November 27, 2019
  • acquire additional seismic or conduct seismic reprocessing by November 27, 2020
  • drill an exploration well by November 27, 2022
Demerara Block
  • complete any additional data processing and planning, and secure all regulatory approvals for the drilling of an exploration well by February 12, 2020
  • drill an exploration well by February 12, 2021
  • drill an exploration well by February 12, 2023
Berbice Block
  • complete a geochemical survey of a minimum area of 120 square kilometers and commence a seismic program defined by the aforementioned geochemical survey by February 12, 2020
  • complete the seismic program and complete all processing and interpretation of data by August 12, 2021
  • drill an exploration well by February 12, 2023

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