Canadian Oil And Gas Company’s Contract Extended By Guyana Government

GEORGETOWN, Guyana, CMC – The Guyana government says it has extended the contract of the Canadian oil and gas company, CGX Energy allowing it to continue its work engagements on the Corentyne Block, offshore Guyana.

Co-Chairman of the oil Company, Professor Suresh Narine, told reporters that “the company deeply appreciates the co-operation of the Government of Guyana, in granting the spud (drill) date extension to CGX Energy”.

He said the extension will cater for the company to “design and plan for the spudding of the next exploration well on the Corentyne Block”.

Narine explained that CGX Energy Inc that holds three licenses in the Guyana-Suriname Basin, was very encouraged with the recent discovery by ExxonMobil on the Stabroek Block, which is located a mere 120 miles offshore Guyana and quite adjacent  to the Corentyne Block.

“This is an exciting time for Guyana and the Guyanese people,’ he said, noting that CGX Energy has been one of the longstanding operators in the basin.

“CGX is delighted to affirm its continued commitment to Guyana and to the exploration of the Guyana-Suriname Basin.’

CGX Energy chief executive officer, Dewi Jones, in a written statement said “the extension of CGX’s work commitment allows for  the company to technically weigh how best to proceed with our drilling”.

He said the company is currently investigating joint ventures to drill the next exploration well given the renewed interest in the Guyana-Suriname Basin.

Jones said if CGX is not successful in attracting a suitable joint venture partner, the company will seek alternative financing structures in order to drill the next well and meet its work commitments in Guyana.

The Corentyne Block is fully owned by the company, and according to Narine, “CGX is not bothered by the border claims from Venezuela” deeming this “to have no material impact on the Company’s acreage offshore Guyana.”

The extensions will now allow the company to determine the best way forward, “given the very recent positive developments in the basin, related to the discovery of hydrocarbons.”

CGX Energy has been in the basin for some 18 years, spending approximately US $350 million,  the most by any competing company.

CGX overall holds three blocks in Guyana, the Corentyne, the Demerara and the Berbice, drilling already, two sets of wells, three offshore  and three onshore.