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(TSX-V | OYL)
TORONTO, April 22, 2013 /CNW/ - CGX Energy Inc. (TSX-V: OYL) ("CGX" or the "Company") announces that its Board of Directors has approved the Financial Statements and MD&A for the year ended December 31, 2012. These documents have been filed on SEDAR, and also posted on the Company's website.
As previously announced, the Company requires additional financing to meet its current obligations and ongoing activities and is currently in the process of finalizing a private placement for a minimum of Cdn$35 million and maximum of Cdn$40 million (the "Offering"). One of the conditions of closing of the Offering is that the Company is to obtain shareholder approval for the termination of the Company's shareholder rights plan, which approval is being sought at a special meeting of shareholders scheduled for April 25, 2013. Another condition of closing of the Offering is that the Company re-negotiate its agreements with certain directors, officers, employees and consultants of the Company such that the aggregate obligations payable by the Company or any of its subsidiaries under such agreements on a change of control of the Company do not exceed approximately Cdn$4 million. The Company has determined that it will limit such aggregate change of control payments to a maximum of Cdn$2 million.
About CGX Energy
CGX is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin, an area in which the United States Geological Survey estimated a Pmean oil resource potential of 13.6 billion barrels in their Assessment of Undiscovered Conventional Oil and Gas Resources of South America and the Caribbean, 2012. CGX is managed by a team of experienced oil and gas and finance professionals from Guyana, Canada, the United States and the United Kingdom.
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 press release contains forward-looking statements. More particularly, this press release contains statements that include, but are not limited to, the closing of the private placement and the calling and holding of a special meeting of shareholders. 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. The forward-looking statements are based on certain key expectations and assumptions made by CGX. Although CGX believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because CGX can give no assurance that 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 to other risks that may affect the forward-looking statements in this press release and those set out in CGX's management's discussion and analysis of the financial condition and results of operations for the year ended December 31, 2012, the private placement could be delayed or not occur if the Company is unable to obtain the requisite shareholder approval on the timelines it has planned, if the Company is unable to continue as a going concern until the closing of the private placement, or if some other condition to the closing is not satisfied. The forward-looking statements contained in this press release are made as of the date hereof and CGX 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.