(TSX-V | OYL) TORONTO, June 20, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or the "Company") today provided an operational update on its exploration assets in Guyana. Dewi Jones, Chief Executive Officer of the Company, commented: "We are very pleased with the progress of all our activities thus far in 2014. We continue to work towards drilling our next offshore exploration well in Guyana and are still optimistic that a joint venture partner will be secured prior to drilling." Corentyne Block Seismic Reprocessing and AVO Analysis At the Company's 100% owned Corentyne petroleum prospecting licence (the "Corentyne PPL") located offshore Guyana, the reprocessing and merging of the existing seismic surveys is now complete. The Company continues to have a technical data room available at its Houston offices and is working towards farming out a portion of the Corentyne PPL to a joint venture partner. In addition to the completion of the seismic reprocessing of the Corentyne PPL, a full elastic seismic inversion and AVO (Amplitude Variation with Offset) has been completed and received from Vector Seismic Data Processing, Inc., which has contributed significantly to the risk assessment of the exploration prospects being considered for the next drilling campaign in the Corentyne PPL. The results of the reprocessing have assisted in confirming and enhancing the geological assessment of the block. The Company has made this information available in its data room and potential joint venture partners are in the process of reviewing the data. While these AVO analysis and results are subject to the uncertainties associated with geophysical/geological modeling, the Company is encouraged by the results and remains optimistic about a potential discovery of hydrocarbons in the basin. Rig Contract and Rig Sharing Agreement CGX Energy is pleased to announce that it has entered into a definitive rig agreement with Japan Drilling Co., Ltd. for the provision of rig services. Under the terms of the agreement, the Company has procured the use of the jack-up drilling rig known as the "HAKURYU-12" rig. In an effort to significantly reduce drilling costs, the Company has simultaneously entered into a rig sharing agreement with Teikoku Oil (Suriname) Co., Ltd., a wholly-owned subsidiary of INPEX CORPORATION ("INPEX"). The HAKURYU-12 rig, which is owned by BOT Lease Co., Ltd., is currently under construction at the PPL Shipyard in Singapore and will be mobilized to the first drilling site after completion in January 2015. The main commercial terms of the rig contracts are as follows: _______________________________________________________________ |Rig Contract Parties: |Japan Drilling Co., Ltd. | | |CGX Resources Inc. | |_______________________________|_______________________________| |Rig Shareing Agreement Parties:|CGX Resources Inc. | | |Teikoku Oil (Suriname) Co., Ltd| | |Japan Drilling Co., Ltd. | |_______________________________|_______________________________| |Operating Area: |Offshore Suriname and Guyana | |_______________________________|_______________________________| |Period of Contract: |One (1) firm well each (total | | |operating days: 150 or more) | |_______________________________|_______________________________| |Estimated Commencement Time: |Q2, 2015 | |_______________________________|_______________________________| |Contract Type: |Day Rate Contract | |_______________________________|_______________________________| |Contract Signing Date: |June 19, 2014 | |_______________________________|_______________________________| In addition, CGX Energy and INPEX have agreed that INPEX shall drill the first offshore well in Suriname in 2015. Spud Date Extension This week, the Company received a five month extension to its spud date deadline at the Corentyne PPL. The Government of Guyana granted approval of an extension on the spud date on the first commitment well from May 31, 2015 to October 31, 2015. The extension was required to ensure that the HAKURYU-12 rig will have sufficient time to arrive in Guyana prior to the commencement of the weather window. Professor Suresh Narine, Co-Chairman of the Company, commented: "The Company deeply appreciates the co-operation of the Government of Guyana in granting to CGX Energy the spud date extension. The procuring of the HAKURYU-12 drilling rig along with this extension significantly enables the Company to address its work obligations under the Corentyne PPL with confidence. CGX Energy, being one of the long standing operators in the basin, is delighted to affirm its continued commitment to Guyana and to exploration of the Guyana-Suriname Basin. The Company's current drilling obligations tangibly demonstrate this commitment, even as it is engaged in actively planning for the spudding of its next well within the Corentyne PPL within the revised timeframe." Demerara Block CGX Energy has commenced the procurement process in order to complete its 2014 work commitments on its 100% owned offshore Demerara petroleum prospecting licence (the "Demerara PPL"). The Company continues to examine methods to reduce the costs associated with the Demerara PPL's seismic survey and expects to be able to share these costs with other companies operating in the Guyana-Suriname basin. Dewi Jones, Chief Executive Officer of the Company, commented: "The Company currently has a number of initiatives that it is rigorously working on as it begins to fulfill its commitments in all three of its PPLs. The Company continues to believe in the potential of the basin and the discovery of hydrocarbons and also reaffirms its commitment to the successful completion of its work programs." 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. About INPEX: INPEX is the largest Japanese oil & gas exploration and production company that ranks high among the mid-tier international oil and gas E&P companies (independents). INPEX is currently carrying out more than 70 oil and natural gas projects across 28 countries, including two large scale LNG project, Ichthys LNG Project in Australia and Abadi LNG Project in Indonesia as the Operator. INPEX aims to become a top class international oil & gas exploration and production company through sustainable growth in the oil and gas development business. With natural gas as the core of our business, INPEX will grow into an integrated energy company by making contributions to a stable energy supply to broader communities. 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 Forward-Looking Statements: This news 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 Energy. CGX Energy 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 news release are outlined further in the Company's Annual Information Form dated March 5, 2014 filed on SEDAR at www.sedar.com. The forward-looking statements contained in this news release are made as of the date hereof and CGX Energy 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 securities laws. SOURCE CGX Energy Inc. Michael Galego, General Counsel and Secretary at (416) 843-3858 email@example.com To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2014/20/c8181.html CO: CGX Energy Inc. ST: Ontario
CGX Energy Provides Operational Update
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