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CGX granted oil exploration extension; unfazed by Venezuela’s recent maritime claim

A map showing the Corentyne Block

The Canada-based oil exploration company, CGX Energy, says Guyana on Thursday granted an extension on its work commitment on the Corentyne Block offshore the South American country.

The company also says that Venezuela’s recent unilateral extension of its maritime boundary to take in all the waters off the Essequibo Coast in no way impacts on its concession located in the Corentyne Block.

On June 18 2015, CGX Energy received approval to extend its spud date deadlines on the Corentyne Block.  The Government of Guyana granted approval of the extensions effective June 18, 2015 for the spud date on the first commitment well from October 31, 2015 to July 31, 2016 and an extension to the spud date deadline on the second commitment well from November 27, 2016 to November 27, 2017.  These extensions were granted to allow the Company to determine how best to explore the acreage given recent positive developments in the basin related to the discovery of hydrocarbons. The Corentyne Block is 100% owned by the Company

Professor Suresh Narine, Co-Chairman of the Company, commented: “The Company deeply appreciates the co-operation of the Government of Guyana in granting the spud date extension to CGX Energy.  This will allow us the time to design and plan for the spudding of the next exploration well on the Corentyne Block as we are very encouraged by the recent discovery by ExxonMobil on the Stabroek Block located approximately 120 miles offshore Guyana and immediately adjacent to the Corentyne Block.  CGX Energy, being one of the longstanding operators in the basin, is delighted to affirm its continued commitment to Guyana and to exploration of the Guyana-Suriname Basin.  This is an exciting time for Guyana and the Guyanese people.”

Dewi Jones, Chief Executive Officer of the Company, commented: “The extension on our work commitments allows the Company to technically weigh how best to proceed with our drilling campaign. We are currently investigating joint ventures to drill the next exploration well given the renewed interest in the Guyana-Suriname Basin.  However, in the event we are not successful in attracting a suitable joint venture partner, the Company will seek alternative financing structures in order to drill the next well and meet its work commitments in Guyana.”

The Company also announced today that it does not view the border claims from Venezuela to have a material impact on the Company’s acreage offshore Guyana.

Professor Suresh Narine further added: “The Corentyne Block and the area where we expect to drill our next well is completely unencumbered and furthermore CGX Energy envisions no reason which will affect its exploration commitments in all its licenses in Guyana.”