CGX still committed to oil drilling here
Guyana Chronicle
October 11, 2001

CGX Energy Inc., the Canadian firm with oil exploration concessions offshore Guyana, yesterday said it was still committed to its exploration programme here.

In a statement, it said it was encouraged by recent developments reported here.

The company, which believes there are world class oil fields in its concessions, was halted in its drilling in June last year when Suriname gunboats ordered the rig out of the area.

That incident triggered a souring of relations between Guyana and Suriname but the climate between the two countries has improved since.

CGX noted that Foreign Minister, Dr. Rudy Insanally has commented on the near term accreditation of the new Surinamese Ambassador to Guyana.

CGX also noted that Insanally further announced that President Bharrat Jagdeo has received an invitation from President Ronald Venetiaan of Suriname to visit the neighbouring country at a mutually convenient time.

Insanally said the two governments were working at the diplomatic level to see when that meeting could take place.

CGX yesterday also reported on the results of its Western Canada drilling programme during the third quarter of this year.

The company said it has participated in the drilling and casing of six wells in Alberta, resulting in one light oil well, one heavy oil well, one heavy oil and gas well, and three gas wells.

"Extended testing has begun or will begin shortly, followed by pipeline tie-in of each of the wells. As stated previously, CGX is taking advantage of current market conditions and utilising its strong management expertise in the development of oil and gas opportunities in Canada", the statement said.

CGX said the programme has also created the opportunity to drill a number of low-risk development wells.

Following extended testing, an independent consulting engineer will be retained to estimate reserves and net present value, it said.

At Vermillion in eastern Alberta, CGX participated in drilling two wells to depths of approximately 600 metres, encountering multiple zones of heavy oil potential plus one gas zone that the company intends to place on production immediately.

The firm said a production test of the Rex reservoir in the first well confirms that the zone can be developed into commercial production.

CGX is focussed on the exploration for oil in the Guyana basin, low risk development in Western Canada and is actively looking at other international opportunities.