Canadian oil explorer CGX renegotiates exploration plan with Guyana Gov’t

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CGX Energy Inc., a Canadian oil explorer today (Monday), announced that the company has successfully renegotiated its work commitments for the Demerara, Corentyne and Berbice Petroleum Prospecting Licenses with the Government of Guyana.

In a statement published on its website today, CGX said that as part of its renegotiation, it has also agreed to relinquish 25% of the acreage of both the Corentyne and Demerara blocks to the Government of Guyana.

CGX had been one of the early explorers in the Guyana-Suriname oil basin. In June of 2000, the Surinamese military seized a rig belonging to CGX. The rig was at the time operating in the Corentyne River; the border between Guyana and Suriname. As a result of the seizure, Guyana took the issue to the United Nations Convention on the Law of the Sea (UNCLOS) in 2004 and in September of 2007, the Tribunal ruled the rig was operating in Guyana’s waters and the issue was settled.

Professor Suresh Narine, Chairman and Executive Director (Guyana) commented: “CGX Energy thanks the Government of Guyana for its continued partnership and support; we as a company are eager to pursue the new work commitments in this exciting Guyana basin, and in so doing continue our unbroken commitment to the basin, the Guyanese people and its Government for more than 18 years.”

The new work commitments are:

Corentyne Block             

  • drill an exploration well by November 27, 2019
  • acquire additional seismic or conduct seismic reprocessing by November 27, 2020
  • drill an exploration well by November 27, 2022

Demerara Block               

  • complete any additional data processing and planning, and secure all regulatory approvals for the drilling of an exploration well by February 12, 2020
  • drill an exploration well by February 12, 2021
  • drill an exploration well by February 12, 2023

Berbice Block   

  • complete a geochemical survey of a minimum area of 120 square kilometers and commence a seismic program defined by the aforementioned geochemical survey by February 12, 2020
  • complete the seismic program and complete all processing and interpretation of data by August 12, 2021
  • drill an exploration well by February 12, 2023

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