(TSX-V | OYL)
TORONTO, July 9, 2012 /CNW/ - CGX Energy Inc. (TSXV: OYL)
("CGX" or the "Company") is pleased to announce that, further to
its press release dated May 28, 2012
and receipt of shareholder approval at the Company's annual and
special meeting of shareholders held June
28, 2012, it has closed its private placement to Pacific
Rubiales Energy Corp. ("Pacific Rubiales") of 85,714,285 units (the
"Units") at a price per Unit of $0.35
for an aggregate purchase price of $30
million. Each unit consists of one common share and
one-half of one common share purchase warrant of the Company (each
whole warrant, a "Warrant"). Each Warrant will be exercisable
for one common share at an exercise price of $0.60 per common share for a period of 18 months
following the date of issuance of the Units.
The common shares acquired by Pacific Rubiales
are, and the common shares which may be acquired upon the exercise
of the Warrants will be, subject to a hold period until
November 10, 2012, in accordance with
applicable securities legislation.
In connection with the closing of the private
placement, Pacific Rubiales cancelled the promissory note
representing the advance of $30
million to CGX on May 29,
2012. The proceeds from the private placement will be
used to fund expenditures related to the Company's oil and gas
exploration activities offshore Guyana and for general corporate purposes.
CGX has paid an advisory fee of 4% of the gross
proceeds of the private placement to GMP Securities L.P.
The Units have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or applicable exemption from the registration
requirements.
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 13.8 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.
Forward-Looking Statements:
This press release contains forward-looking
statements. More particularly, this press release contains
statements that include, but are not limited to, the timing of the
advance and related security, the closing of the private placement,
the anticipated use of proceeds and the receipt of the required
shareholder and stock exchange approvals. 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 three month period ended March 31
2012. The intended use of the net proceeds of the private
placement by CGX may change if the board of directors of CGX
determines that it would be in the best interests of CGX to deploy
the proceeds for some other purpose.
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.