"ON Energy, a 62% subsidiary of CGX, holds exploration licenses covering approximately 800,000 acres onshore Guyana. Our minimum work commitment of aeromag, geochemical surveys and 2D seismic were completed last summer, 2 years ahead of schedule. We are pleased to finally have the opportunity to test a few of the 20 prospects we've identified, after a long delay caused by rig scarcity, a hurricane in the Gulf of Mexico and the flood of the century in Guyana," stated Warren Workman, Vice President of CGX and President of ON Energy Inc.
Kerry Sully, President of CGX and Chairman of ON Energy stated "The Company is planning the drilling of up to 4 wells, at a dryhole cost of approximately US$5.2 million. Maximum target depth ranges from 4000 feet to 6,200 feet, compared with the shallow wells onshore Suriname at Tambaredjo and Calcutta, that have a maximum depth of approximately 1,500 feet. If our drilling is successful, it would create a significant new industry for the people of Guyana, and be very material for the shareholders of both ON and CGX. However, this is high risk exploration, because there has never been a commercial hydrocarbon discovery either on or offshore."
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