CGX Inks LOI for Hakurya-12 to Drill Guyana's Corentyne Block in 2015

Canada's oil and gas exploration firm CGX Energy Inc. (CGX Energy or the Company) announced Monday that it has entered into a binding letter of intent (LOI) with Teikoku Oil (Suriname) Co., Ltd., a wholly-owned subsidiary of Inpex Corporation (Inpex and CGX Energy, the Rig Sharing Group), and Japan Drilling Co., Ltd. (JDC), for use of the jackup Hakuryu-12 (400' ILC) .

The LOI forms the basis of the definitive rig agreements between JDC and each of the members of the Rig Sharing Group. The members of the Rig Sharing Group are required to enter into definitive rig agreements with JDC in order to reduce mobilization and demobilization costs. The Hakuryu-12 will be delivered to Trinidad between April 1, 2015 and May 1, 2015.

Dewi Jones, CEO of the Company, commented: "This LOI represents the next step in drilling at our 100 percent owned Corentyne Block. Being a part of the Rig Sharing Group means that CGX Energy will benefit from significantly reduced mobilization and demobilization costs typically associated with offshore drilling. The Hakuryu-12 is a jackup that fits the Company's well design specifications."


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