CGX releases new estimate for gas, oil in Corentyne licence

CGX releases new estimate for gas, oil in Corentyne licence

Stabroek News – March 30, 2013 

CGX Energy Inc. reported on March 21, 2013 that an independent resources evaluation has been completed by DeGolyer and MacNaughton of Dallas, Texas, USA (D&M) for six prospects on CGX’s Corentyne Petroleum Prospecting Licence (PPL) located offshore Guyana.
A release from CGX said that using probabilistic analysis, D&M has estimated a total best estimate Prospective Resources, as of December 31, 2012, for six oil and gas prospects of 779 million barrels of oil, 743 million barrels of condensate, and 6,943 billion cubic feet of sales gas plus 696 billion cubic feet of associated solution gas.  
Kerry Sully, President and CEO of CGX is quoted as saying, “The work on our Corentyne PPL by DeGolyer and MacNaughton supports the merits of continued exploration in Guyana.”
The release said that when converted the best estimate of recoverable prospective oil and condensate plus sales gas resources would be 2,664 million barrels of oil equivalent.
This, it said, is very close to the estimate for Corentyne of 2,510 million barrels estimate previously reported prior to the drilling of the wells.
“…The Eagle Shallow Eocene prospect has been disproven, but re-interpretation of seismic plus incorporating recent well data has yielded five new prospects.  The value per unit of risked resource will be lower given that half of the appraised product is now gas having lower commodity value than either oil or condensate, and the capital and operating costs will be significantly higher than previously estimated because of the very high pressures and temperatures encountered in last year’s drilling.”
The release said that the Report is limited to an estimate of the potential gross undiscovered oil, condensate and gas prospective resources in six prospects underlying the Corentyne PPL.
This D&M Prospective Resources Evaluation supersedes all previous resource reports and incorporates all existing and new seismic information and well results to the end of 2012.
According to their website, CGX intends to drill and to test all geologic zones that are present on the Corentyne offshore licence. Under the terms of the new Corentyne Licence, CGX has a commitment to drill two wells by November 27, 2016.
CGX is currently in throes of restructuring that could see the majority of its shares being held by another company.   The shake-up came amid two dry wells last year which left it with a large debt that it could not meet.

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