CGX Says the Guyana Onshore Seismic Program Near Completion

CGX Energy reports that its onshore seismic program is nearing completion and that the financing engagement with Octagon Capital Corporation announced on April 26, 2004 has expired effective today.

In a statement Mr. Kerry Sully, President & CEO stated "The ongoing exploration programs and operations of CGX are proceeding and are not affected in any way by the expiry of this engagement. The 2-D seismic survey which is currently underway onshore Guyana is nearing completion. In order to maintain our schedule on the 180 kilometre program so that it would be completed prior to the rainy season, additional personnel were hired, increasing the crew size to more than 170 members. The last of approximately 2,300 shot holes were drilled on May 24. Recording is now two-thirds completed, and is expected to be finalized in the second week of June. The seismic data on 2 of the 22 lines has been reviewed in Canada , and shows good frequency response and quality to basement which is approximately 7,500 feet. The sedimentary package is much thicker than at Tambaredjo and Calcutta , two oil fields 200 kilometres to the east in Suriname , with recoverable reserves estimated to be 170 million and 15 million barrels respectively, and where the basement is at less than 1,500 feet."

"We will be processing and interpreting the seismic during June and July to choose the best of the 22 leads that were identified with our geomicrobial survey. We are also finalizing the logistics for drilling, in anticipation that we will launch the first onshore drilling in the Berbice area since 1967 this fall."

"With respect to a resolution on the offshore border dispute between Guyana and Suriname , meetings are proceeding under the United Nations Convention of the Law of the Sea filed by Guyana on February 25, 2004 to demarcate its maritime border with Suriname . After being very quiet for almost 4 years, the region is now becoming very active. To the east, Repsol-YPF and Maersk have recently entered into separate agreements with Suriname for production sharing contracts adjacent to CGX's Corentyne License granted by Guyana . At the time of the announcement, it was foreseen that Repsol may shoot 1,800 km of seismic during the fourth quarter of this year. To the northwest, adjacent to CGX's Pomeroon License, which license is subject to final approval by the government of Guyana , Venezuela granted three exploration blocks for signing bonuses of $56 million and work commitments of $107 million. During the next three months, three wells are planned to be drilled by Statoil and ChevronTexaco."
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