CGX Announces New Corentyne License [Gulf Oil & Gas (Egypt)]

CGX Energy Inc is pleased to announce that the Company has transitioned to a new Corentyne petroleum agreement (“Corentyne PA”) and petroleum prospecting license (“Corentyne PPL”) offshore Guyana effective as of November 27, 2012, renewable after four years for up to ten years. The new Corentyne PA applies to the former offshore portion of the Corentyne PPL, covering 6,212 square kilometres. The license is based on Guyana’s revised specimen agreement but with terms and conditions similar to the former Corentyne PA. Under the terms of the new Corentyne PA, and during the initial period of four years, CGX has an obligation to drill two wells. Application has also been made by CGX for new PA’s to be issued for the former Annex PPL, the onshore portion of the Corentyne PPL, and the Berbice PPL.

Kerry Sully, President and CEO, stated, “We are very pleased to be issued this new PA. It will allow us to start contracting services and supplies for Eagle Deep, the well we have planned to explore the Turonian in the Corentyne PA. Eagle Deep will be a High Pressure High Temperature (HPHT) well, similar to the Jaguar well drilled earlier this year in which CGX held a 25% participating interest. Although that well did not reach the target zone, much was learned that will benefit the drilling of Eagle Deep and other deep wells in the basin. Because of the long-lead time required for HPHT wells, drilling is forecast for the first quarter of 2014. A number of shallower prospects have also been identified using data from recent drilling and 3D seismic.” In respect of the Georgetown PA, Kerry Sully added, “The application is in process under the direction of Repsol Exploraci?n S.A. (“Repsol”), as operator, with the Government of Guyana and the contemplated farm-out of 5% of CGX’s 25% interest in the Georgetown PA to Repsol announced on October 1, 2012 is no longer under consideration.”

Professor Suresh Narine, Chairman, stated, “With this license, CGX will now aggressively continue its exploration of the exciting Guyana-Suriname basin. The commitment by the Company to the Government and people of Guyana and the basin has been unwavering over the past 14 years, during which time CGX has undertaken more exploration activity in the basin than any other company. We wish to thank the Government and the people of Guyana for their continued confidence in CGX and look forward to drilling at least two new wells in the Corentyne PA within the next four years, as part of our planned basin-leading exploration activity. In doing so, we aim to employ the best science and technology available to target the prospects identified, armed with significantly more knowledge of the basin’s geology from the drilling of Eagle Shallow and the Jaguar-1 well.”