(TSX-V | OYL)
TORONTO,
July 16, 2012 /CNW/ - CGX Energy Inc.
(TSX-V - OYL) ("CGX" or the "Company") announces, along with its
partners on the Jaguar-1 well located on the Company's 25% owned
Georgetown Petroleum Prospecting License ("PPL"), that drilling
operations at the Jaguar-1 well on the Georgetown PPL, Guyana have ended and the well will be plugged
at a depth of 4,876 metres without reaching the primary objective
in the Late Cretaceous geologic zone. The decision to stop drilling
at this point was unanimously agreed by all partners based on
safety criteria and was taken after reaching a point in the well
where the pressure design limits for safe operations prevented
further drilling to the main objective. Jaguar-1 was a high
pressure, high temperature (HPHT) well which was spudded in
February 2012 using the Atwood Beacon
jack-up rig. Whilst the primary Late Cretaceous objective was not
reached, samples of light oil were successfully recovered from two
Late Cretaceous turbidite sands. The partners to the Georgetown PPL
are Repsol Exploración S.A (15%), as operator, along with YPF
Guyana Limited (30%), Tullow Oil plc (30%) and CGX Resources Inc.
(25%).
Kerry Sully,
President and CEO stated, "Based on hydrocarbons recovered during
the drilling of Jaguar-1, CGX is confident that a new well
targeting the same prospect would hold significant promise and is
therefore committed to seek a re-drill utilizing a new well
design."
Commenting on the Company's plans in the Guyana
Suriname basin, Suresh Narine,
Chairman, reiterated CGX's near-term goals stating, "In addition to
our commitment well on the Corentyne Block, we are planning a 3D
seismic program later this fall with our ultimate goal being to
commit to a rig for a three to five well program. Added to this
would be the re-drill of the Late Cretaceous target addressed by
the Jaguar-1 well."
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 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.