CGX Expects Rig to Arrive in Guyana Shortly

The long-awaited onshore oil rig from Trinidad is expected to arrive in Guyana this week to begin On-Energy's exploratory drilling in Berbice.

The vessel was loaded over the weekend, a shipping company confirmed yesterday. Personnel from the company went to Trinidad to supervise the loading of the rig onto a barge. The rig is said to be arriving with all equipment and ancillary services. It had been recently released from rental from its drill location in Trinidad.

The unavailability of the rig had held up the commencement of drilling operations which had been scheduled for the first quarter this year. The operations will be managed by CGX's subsidiary in Guyana, ON Energy Inc.

The company is planning the drilling of up to four wells in Berbice, at a dry-hole cost of approximately US$5.2 million. Maximum target depth ranges from 4,000 feet to 6,200 feet. The company is investing capital of US$8M for the initial phase of the operation.