CGX Provides Update on Pomeroon and Georgetown Licenses Offshore Guyana
(TSX-V | OYL)
TORONTO, March 11, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or the "Company") announces that the Pomeroon Petroleum Agreement (PA) expired effective November 19, 2012.
The Pomeroon PA was issued to Century Guyana, Ltd. in November 1997 and was purchased by CGX in January 2004. As has been reported since 2007, the Company has been in discussions with the Government of Guyana regarding modification of the Pomeroon PA that would have extended the PA to November 2013. During these discussions the Company was advised that the November 1997 Pomeroon PA reverted to the Government effective November 19, 2012. Additionally, the Company's Georgetown PA expired November 25, 2012, as disclosed in the 2012 third quarter financial statements. The costs associated with these licenses as at September 30, 2012 was approximately $2 million in relation to the Pomeroon PA and $51 million in relation to the Georgetown PA.
As a result of these licenses having expired in November 2012 and the Company's current uncertainty relating to these licenses, the Company may record an impairment of the full carrying amounts in its year end 2012 financial statements. In the event that the Company secures the renewal of the licenses, the Company will revisit any impairment previously recorded.
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.
SOURCE CGX Energy Inc.