TORONTO, Dec. 23, 2013 /CNW/ – CGX Energy Inc. (TSX:V – OYL) (“CGX Energy” or the “Company”) announced today that it will commence arbitration proceedings against Repsol Exploracion, S.A. (“Repsol”) in connection with the expiry of the petroleum prospecting license covering the Georgetown Block (the “Georgetown PPL”).
The Company is of the view that the terms of the joint operating agreement governing the Georgetown Block were still in effect when Repsol allowed the Georgetown PPL to expire and sought out a new petroleum prospecting license covering virtually identical acreage offshore in Guyana, which is now known as the Kanuku petroleum prospecting license. Furthermore, Repsol was aware of CGX Energy’s continued interest in the Georgetown PPL and had an obligation to seek renewal of the Georgetown PPL alongside CGX Energy.
About CGX Energy
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.