(TSX-V | OYL)
TORONTO, Oct. 2, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or the "Company") is pleased to provide the following update on its activities relating to the continued exploration on the Company's Petroleum Prospecting Licenses ("PPLs") in Guyana.
Joint Venture Initiatives
CGX Energy continues to actively pursue strategic joint venture partners for all three of its PPLs and has a technical data room open at its Houston office. As part of the joint venture process, the Company is currently preparing to re-process a portion of its 3D seismic data set for the Corentyne Block, which should be completed by year-end.
In addition, the Company has granted Repsol Exploracion, S.A. permission to acquire seismic data in portions of the Corentyne Block when acquiring a new 3D seismic survey in the Kanuku Block during the fourth quarter of 2013. The data acquired in the Corentyne Block during this survey will be provided to the Company at no additional cost.
Cost Cutting Initiatives
During the third quarter, CGX Energy continued to focus on cost cutting initiatives in order to reduce the size of the Company to better reflect current operations. As a result of these initiatives, the Company's general and administrative costs have decreased by approximately 30% on a per month basis, since April, 2013.
On July 9, 2013, the Company completed the consolidation of its issued and outstanding common shares (the "Common Shares"). The Common Shares were consolidated on the basis of 10 pre-consolidation shares for each post-consolidation share.
Dewi Jones, Chief Executive Officer of the Company, commented:
"CGX Energy is undergoing a transformation in preparation for the next stages of exploration in Guyana. By leveraging the technical expertise of Pacific Rubiales in Latin America, we believe that we can secure new joint venture partners to develop our extensive offshore acreage. With our lower costs and improved capital structure, the Company is well positioned for the future. We are excited about the progress we have made thus far and look to end the year stronger than when we entered into 2013."
About CGX Energy
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur in the future. These forward-looking statements are based on certain key expectations and assumptions made by CGX Energy. CGX Energy believes the expectations and assumptions on which it develops forward-looking statements are reasonable; however, undue reliance should not be placed on forward-looking statements as there can be no assurance they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition, other risks that may affect the forward-looking statements in this news release are outlined further in the Company's Annual Information Form dated June 10, 2013 filed on SEDAR at www.sedar.com.
The forward-looking statements contained in this news release are made as of the date hereof and CGX Energy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE CGX Energy Inc.