Guyana views CGX Energy – the first company to embark on large-scale oil exploration off the country’s coast – as an indigenous company and this has played a role in the granting of an extension on its Petroleum Exploration License.
Guyana’s Minister of Natural Resources, Raphael Trotman, confirmed on Thursday that the company had been granted the extension, allowing it to resume its search for oil in the South American country.
Mr. Trotman was at the time responding to questions posed by OilNOW following his first press conference for 2018, held at the Ministry’s Brickdam, Georgetown Headquarters.
“I believe that CGX is looking to regain some foothold and financing and government acting on advice of the (Guyana) Geology and Mines Commission (GGMC) decided to give them an extension,” he said.
According to Mr. Trotman; “We see them more as an indigenous company,” hence the favourable consideration in extending the Petroleum Exploration Licence. He added, “They (CGX) are the ones that were here first and we would not wish to see them fall away.”
As such, Mr. Trotman related that GGMC recently reviewed a request for an extension and “we have approved that.”
In December last, as part of its renegotiations with Government for its work programme for concessions in the Demerara and Corentyne (Berbice) blocks, the company announced that it had to relinquish a quarter of the acreage it once controlled.
It has now projected a new drill date for its operations in the Corentyne Block for late 2019 having acquired more seismic data with another exploration well targeted three years later in 2022.
The company has also submitted work plans for its Demerara controlled concessions with an intention to drill an exploration well by February 2021 and another by 2013.
CGX, in addition to its recent financial woes has also seen its Chief Executive Officer (CEO) Dewi Jones, resigning in the first week of January, 2018. Executive Director for the company’s Guyana Operations, Professor Suresh Narine, was named to act in the capacity.
The value of the company’s shares has been on a freefall in its trading on the international stock markets. According to the most recent reports, CGX Energy Inc., has had a decrease of 91.67% in short interest on its stock held. The stock has also decreased 14.64% or $0.036 during the last trading session, reaching $0.207.
As of April 29, 2016, CGX Energy Inc. held interests in three petroleum concessions, including Corentyne, Berbice, and Demerara blocks covering approximately 3.3 million gross acres in offshore and onshore Guyana.
CGX Energy Inc. is billed as one of the key participants at the upcoming Guyana International Petroleum Business Summit and Exhibition (GIPEX) 2018, having signed on as a ‘Gold Sponsor.’
The company, founded in 1998, is headquartered in Toronto, Canada.