CGX Energy, partners renew exploration license off Guyana

CGX Resources Inc. and its partners have renewed their Georgetown Petroleum Prospecting License (PPL) off Guyana and have entered into the second renewal period.

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Jan. 8 -- CGX Resources Inc. and its partners have renewed their Georgetown Petroleum Prospecting License (PPL) off Guyana and have entered into the second renewal period.

Repsol Exploracion SA is operator of the Georgetown PPL and holds a 15% stake, while YPF Guyana Ltd. and Tullow Guyana BV each hold stakes of 30%. CGX holds the remaining 25%.

CGX said during the first 18 months of the second renewal period there is a minimum work commitment of one exploration well. It also said that in transition to the second renewal period approximately 30% of the area under contract has been relinquished back to the government.

“Processing and interpretation of the recently acquired 1,839 sq km 3D seismic is well advanced for the selection of the location for the commitment well,” CGX said.

In January 2009, CGX announced that shooting of the seismic survey on the Georgetown PPL had been completed. The Georgetown survey was shot jointly with CGX’s 505 sq km survey on its 100% owned Corentyne PPL that was completed in December 2008.

According to Warren Workman, CGX vice-president for exploration, data quality reviewed up that that point was “excellent with minimal noise and early results giving clear images below 30,000 feet.”

Wrokman said that processing had been ongoing since November 2008, with PSTM interpretation expected by the second quarter on the Corentyne PPL.

“In anticipation that the seismic interpretation will continue to support a drilling commitment on the Corentyne PPL, we are advancing in parallel our well drilling design and environmental assessment study," Workman said.

Last November, CGX said it would drill for oil and natural gas deposits in the Corentyne region along Guyana's eastern coast in 2010 after a nearly decade-long sea-border dispute disrupted operations.

CGX originally identified the location in June 2000 but could not begin work when Suriname claimed ownership of the site.

A United Nations tribunal settled the maritime border dispute in 2007, awarding Guyana sovereignty more than 12,837 sq miles of the coastal waters, while Suriname received 6,900 sq miles (OGJ Newsletter, Oct. 1, 2007).

According to CGX, the UN resolution also determined that the CGX site was more than 10 km inside Guyana's territory, but the company found a better location 5 km south of the original site.

Several other international oil companies, including ExxonMobil Corp., also have concessions in Guyana's oil and gas-rich basin, which the USGS says could contain up to 15 billion bbl of oil and 42 tcf of gas reserves.

Contact Eric Watkins at hippalus@yahoo.com.

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