CGX Puts Offshore Guyana Farm-Out on Hold, Waits on 3D Seismic Data

CGX Energy Inc. has announced that YPF Guyana Ltd., a subsidiary of RepsolYPF acting as Operator of the venture, has awarded a 1,650 square-kilometer 3D marine-seismic contract to Fugro-GeoTeam on the Georgetown Petroleum Prospecting License (PPL) offshore Guyana. CGX Resources Inc., a wholly owned subsidiary of CGX holds a 25% interest in the Georgetown PPL.

"Fugro's seismic vessel R/V Geo Pacific will begin activities late this September. These seismic activities will be jointly conducted with CGX's previously announced 536 square kilometer 3D program on the adjoining Corentyne PPL, in which CGX holds a 100% interest," stated Kerry Sully, President and CEO of CGX.

In addition, Sully commented, "The combined program will result in economies of scale through shared mobilization and longer sailing lines when combined with the previously announced Corentyne program. CGX's share of the combined program is estimated to be $15.8 million which will be funded by CGX from existing working capital."

CGX also confirms that the farm-out process that has been led by CGX's agent Jeffries, Randall & Dewey of Houston, Texas has been put on hold during the 3D seismic period. On this, Sully said, "We were pleased that significant interest was generated in this joint venture process on CGX's Corentyne PPL, however given that the 3D seismic acquisition is about to proceed on the Corentyne and Georgetown PPLs, CGX has put the farm-out process on hold until the 3D seismic data has been received and preliminary interpretation completed."