(TSX-V | OYL)
TORONTO, July 30, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) announced today
the release of its unaudited consolidated financial results for the quarter
ended June 30, 2014, 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 2014 Overview and Highlights
-- Financial Results - The Company recorded net loss of $1,527,658
or $0.02 a share for the three month period ended June 30,
2014, compared with $8,548,852 or $0.13 a share for the same
period in 2013.
-- Definitive Rig Agreement - In June 2014, the Company 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
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 Company plans to utilize this rig for the
drilling of its commitment well under the Company's Corentyne
petroleum prospecting licence ("PPL") in 2015.
-- Corentyne Block Update - In June, 2014, 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.
-- Successful Injunction against Repsol -In December 2013, the
Company commenced arbitration proceedings against Repsol
Exploracion, S.A. ("Repsol") in connection with the expiry of
the PPL covering the Georgetown Block. The Company is of the
view that the terms of the joint operating agreement governing
the Georgetown Block were still in effect when Repsol allowed
the Georgetown PPL to expire and sought out a new PPL covering
virtually identical acreage offshore in Guyana, which is now
known as the Kanuku PPL. Furthermore, Repsol was aware of CGX's
continued interest in the Georgetown PPL and had an obligation
to seek renewal of the Georgetown PPL alongside CGX. In
January 2014, CGX obtained an injunction order from the
Commercial Court of Guyana restraining Repsol from proceeding
with the 30% farm-out of the Kanuku PPL to RWE Dea AG or any
other parties pending the hearing and determination of the
arbitration proceedings commenced by CGX against Repsol. As of
the date hereof, the injunction is still in place.
-- Strategic Partners and New Initiatives- With the assistance of
Vector Seismic Data Processing Inc., the Company has completed
the reprocessing of the seismic data relating to the Corentyne
PPL and merged the existing seismic surveys. The Company
completed the re-interpreting of the seismic data to delineate
a new prospect on the Corentyne PPL with the assistance of
Pacific Rubiales Energy Corp. ("Pacific Rubiales") and its
technical staff. CGX continues its initiatives to secure a
Joint Venture Partner for its Corentyne PPL. In the short
term, the Company will likely require additional financing and
seek to widen its shareholder base, but still with a view to
negotiating farm-out transactions as the primary way to enhance
-- Cost Cutting Initiatives: General and administration costs
decreased by $1,648,024 to $362,839 in the three month period
ended June 30, 2014 from $2,010,863 for the same period in
2013. The Company continues to reduce general and
administrative costs leading up to the drilling of the next
exploration well at the Corentyne PPL.
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
SOURCE CGX Energy Inc.
Michael Galego, General Counsel and Secretary at (416) 843-3858
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CO: CGX Energy Inc.
-0- Jul/30/2014 23:36 GMT
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