CGX Announces New Demerara and Berbice Licenses

Feb 13, 2013, 08:00 ET from CGX Energy Inc.


TORONTO, Feb. 13, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or the "Company") is pleased to announce that the Government of Guyana has issued two new petroleum prospecting licenses, one to CGX Resources Inc., a wholly owned subsidiary of CGX and one to ON Energy Inc. ("ON Energy"), a 62% owned subsidiary of CGX, both effective as of February 12, 2013 and renewable after four years for up to ten years.

The new Demerara petroleum agreement ("Demerara PA") and petroleum prospecting license ("Demerara PPL") applies to the former offshore portion of the Annex PPL, covering 3,975 square kilometres, which was a subset of the Company's original Corentyne Petroleum Agreement.  Under the terms of the new Demerara PA, and during the initial period of four years, CGX has an obligation to conduct a 3D seismic survey comprising a minimum of 1,000 square kilometres and to drill one exploration well.

The new Berbice petroleum agreement ("Berbice PA") and petroleum prospecting license ("Berbice PPL") applies to the former Berbice license comprising 1,566 square kilometres (971 square kilometres net) and the former onshore portion of the Company's original Corentyne Petroleum Agreement comprising 1,729 square kilometres (1,072 square kilometres net) for total onshore acreage of 3,295 square kilometres. Under the terms of the new Berbice PA and during the initial period of four years, ON Energy has an obligation to conduct an airborne survey comprising a minimum of 1,000 square kilometres and either conduct a 2D seismic survey comprising a minimum of 100 square kilometres or drill one exploration well.

Kerry Sully, President and CEO, stated, "CGX has identified leads on the Demerara PA that will require 3D seismic to enhance to prospect status. The licence straddles a portion of the current continental shelf and is updip from a 3D seismic program recently shot by Exxon and Shell in the adjoining Stabroek PA. On the Berbice PA, the main exploration targets are stratigraphic traps similar to the Tambaredjo and Calcutta heavy-oil fields onshore Suriname. Staatsolie Maatschappij Suriname N.V. estimates original oil-in-place of more than a billion barrels in these fields, with remaining proved reserves at the end of 2011 of 77 million barrels after 30 years of production."

Professor Suresh Narine, Executive Chairman, stated, "The issuance of the new Demerara PPL and Berbice PPL by the Government of Guyana to CGX is a further endorsement of the important role CGX plays in a realization of the petroleum potential of the Guyana Suriname basin. On behalf of our shareholders, management, staff and board, I would like to thank the Government and people of Guyana for their continued confidence in CGX, the Company that has been the most active explorer in Guyana over the last 15 years.  Our acreage position in the basin on the Corentyne PA issued in November 2012 and these new licenses positions CGX with a diversity of exciting prospects which means we will be aggressively engaged in the basin for some time to come."

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.


Forward-Looking Statements:

This press 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.

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 discussion and analysis of the financial condition and results of operations for the year ended December 31, 2011 and the nine month period ended September 30, 2012 as well as the Company's Annual Information Form dated and filed on July 13, 2012.

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.