CGX Energy withdraws from Guyana project

CGX Energy Inc., Toronto, is withdrawing from an exploration project in Guyana because of a boundary dispute between Guyana and Suriname. The company said it was preparing to drill an oil prospect, Eagle, June 3 when personnel on Surinamese military vessels ordered the rig to leave because they said it was in Suriname waters.

Jul 26th, 2000


CALGARY�CGX Energy Inc., Toronto, said July 21 it is withdrawing from an exploration project in Guyana because of a boundary dispute between Guyana and Suriname.

The company said it was preparing to drill an oil prospect, Eagle, June 3 when personnel on Surinamese military vessels ordered the rig to leave because they said it was in Suriname waters. The two countries have been trying without success to resolve a maritime boundary dispute.

Guyana President Bharat Jagdeo said this month that he will not continue talks with outgoing Suriname president Jules Wijdenbosch but would talk with his likely successor, Ronald Venetiaan. A presidential election was held in Suriname May 25.

CGX acquired a 100% working interest in the 15,464 sq km Corentyne concession in and off Guyana in June 1998. The concession comprises 172 blocks.

CGX postulates that the disputed area has reserves of 850 million bbl, with potential to produce 200,000 b/d. It had contracted the C.E. Thornton jackup from R&B Falcon Corp. to drill the well in 270 ft of water, 135 km offshore. The company has begun dismantling its rig but has not ruled out returning if talks resume to end the border dispute.

CGX has a 10-year concession to explore off Guyana. The firm has identified two prospects�Eagle and Wishbone�via seismic analysis. It drilled another well in the area, on Wishbone, that was a dry hole.

The US Geological Survey estimates the Guyana-Suriname basin has potential reserves of 15 billion bbl.

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