ON Energy Begins Drilling in Guyana

CGX Energy and its Guyanese subsidiary ON Energy report that drilling operations have commenced on its Yakusari well, located onshore Guyana. The well will be drilled to a depth of approximately 1,000 meters with targets including both Eocene and Paleocene formations. It is anticipated that it will take between 2 to 3 weeks to drill to depth. This is the first well of a four well program.

"ON Energy, a 62% subsidiary of CGX is embarking on a challenging, high risk drilling program based on seismic and geochemical. A successful outcome would have significant impact on both our shareholders and the country of 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 "It's very exciting to finally be drilling the first of our 4 wildcats a wildcat being an exploratory oil well drilled on speculation in an area not previously known to produce. The nature of a wildcat is the probability of a commercial success is low, typically no better than 10%. Over the years in Guyana, there's only been 8 wells drilled onshore and 11 wells drilled offshore, all of which were dry and abandoned. However, oil and gas shows were seen in several of those historic wells, evidence of an active hydrocarbon system. If we encounter significant oil and gas shows while drilling, and if our electric well-logging supports the possibility of formations that warrant further testing, we will cement casing in the well, suspending operations on that well until we can mobilize test equipment from Trinidad."


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