(TSX-V | OYL)
TORONTO, July 23, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) announced today
the release of its unaudited consolidated financial results for the quarter
ended June 30, 2013, together with its Management Discussion and Analysis.
These documents will be posted on the Company's website at www.cgxenergy.com
and SEDAR at www.sedar.com.
Second Quarter 2013 Overview and Highlights
-- CGX Energy reported a net loss of loss of $8,548,852 or $0.13
per share for the three month period ended June 30, 2013,
compared with a net loss of $94,093,285 or $2.88 a share for
the same period in 2012.
-- Cost Cutting Initiatives: With the exception of items relating
to the special committee process that was undertaken and the
change of control payments made due to the investment by
Pacific Rubiales Energy Corp. ("Pacific Rubiales"), the
Company's general and administration costs decreased in the
second quarter due to a reduction in all non-essential
purchases and travel. The Company will continue to evaluate
further cost cutting initiatives and is determined to keep
general and administrative costs at current or lower levels
going forward. As at June 30, 2013, the Company's working
capital increased to $13,361,347 from a working capital
deficiency of $12,650,761 as at December 31, 2012.
-- Private Placement Financing: On April 26, 2013, the Company
closed a brokered private placement raising CDN $37,008,900 by
issuing 37,008,900 post-consolidation units (the "Units") at a
price of CDN $1.00 per Unit. Each Unit was comprised of one
post-consolidation common share in the capital of the Company
and one post-consolidation common share purchase warrant. Each
post-consolidation common share purchase warrant entitles the
holder thereof to acquire one post-consolidation common share
at any time until April 26, 2018 at an exercise price of CDN
$1.70. In connection with the private placement, the Company's
board of directors and its senior management team have been
-- Share Consolidation: At the Company's Annual and Special
Meeting of shareholders held on June 26, 2013, the shareholders
approved a consolidation of its issued and outstanding common
shares, warrants and options on a basis of 10 pre-consolidated
shares, warrants or options for each post-consolidation share,
warrant or option. On July 11, 2013, the Company filed
articles of amendment to complete this consolidation.
-- Strategic Partners and New Initiatives: As of March 19, 2013
and effective December 31, 2012, an Independent Resources
Evaluation was completed by DeGolyer and MacNaughton of Dallas,
Texas, USA (the "D&M Report"). In the D&M Report, the total
best estimate (P50) of Prospective Resources for six oil and
gas prospects within the Corentyne PA are 779 MMbbl of oil, 743
MMbbl of condensate, 6,943 Bcf of sales gas plus 696 billion
cubic feet of solution gas. The Company is now in the process
of re-interpreting seismic data to define the next prospect to
be drilled on the Corenytne PPL with the assistance of Pacific
Rubiales and its technical staff. In the short term, the
Company will likely require additional equity financing and
will seek to widen its shareholder base with a view to longer
term farm-out transactions to enhance shareholder value.
About CGX Energy
CGX Energy is a Canadian-based oil and gas exploration company focused on the
exploration of oil in the Guyana-Suriname Basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains forward-looking statements. Forward-looking
statements are frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", anticipate", "estimate", "may", "will",
"would", "potential", "proposed" and other similar words, or statements that
certain events or conditions "may" or "will" occur in the future. These
forward-looking statements are based on certain key expectations and
assumptions made by CGX. CGX believes the expectations and assumptions on
which it develops forward-looking statements are reasonable; however, undue
reliance should not be placed on forward-looking statements as there can be no
assurance they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks. In addition,
other risks that may affect the forward-looking statements in this press
release are outlined further in the Company's Annual Information Form dated
June 10, 2013 filed on SEDAR at www.sedar.com.
The forward-looking statements contained in this press release are made as of
the date hereof and CGX undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
Readers should give attention to the estimates of individual classes of
resources and appreciate the differing probabilities of recovery associated
with each class. Estimates of remaining recoverable resources (unrisked)
include Prospective Resources that have not been adjusted for risk based on
the chance of discovery or the chance of development and Contingent Resources
that have not been adjusted for risk based on the chance of development. It
is not an estimate of volumes that may be recovered. Actual recovery is
likely to be less and may be substantially less or zero.
Prospective Resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective Resources have both
an associated chance of discovery and a chance of development. Prospective
Resources are further subdivided in accordance with the level of certainty
associated with recoverable estimates, assuming their discovery and
development, and may be sub-classified based on project maturity. There is
no certainty that any portion of the resources will be discovered. If
discovered, and they would be technically and economically viable to recover;
there is no certainty that the Prospective Resource will be discovered. If
discovered, there is no certainty that any discovery will be technically or
economically viable to produce any portion of the resources.
SOURCE CGX Energy Inc.
Suresh Narine, Co-Chairman at (705) 933-8389 email@example.com Michael
Galego, General Counsel and Secretary at (416) 843-3858
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CO: CGX Energy Inc.
-0- Jul/24/2013 02:43 GMT
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