CGX files 2nd Qtr. financial results, provides exploration update

Aug 25, 2009 News

CGX Energy Inc. yesterday announced that it has filed its Interim Financial Statements and Management Discussion & Analysis for the period ended June 30, 2009 on the Company’s SEDAR profile and they have also been posted on the Company’s website.

As of June 30, 2009, CGX remains well financed with a working capital of $18.3 million.

During the first half of 2009, the principle activity undertaken by the Company has been the processing of the seismic data acquired on the 505 sq km 3D seismic survey on CGX’s 100% owned Corentyne Petroleum Prospecting Licence (PPL) and on the 1,839 sq km 3D seismic survey on CGX’s 25% Georgetown PPL.

Joint Venture Partners in the Georgetown PPL include the Operator, Repsol (15%) and its subsidiary, YPF Guyana (30%), and Tullow Guyana BV (30%).

Warren Workman, Vice President of Exploration stated, “The conventional processing of our 3D programme, the first shot offshore Guyana, is nearly complete.

We are encouraged by the time and depth images and our initial interpretation. Compared with the 2D, the 3D data is providing superior depth modeling, better detail at the prospect level, and identifying new leads.

By September, CCG Veritas will have completed Pre-Stack Depth Migration (PSDM) of the 3D seismic to give a better image of the depth and geometry of targets.

To further advance our interpretation we have retained international experts to extract technical attributes from the dataset.

Data Modeling Inc. from Calgary is using proprietary artificial intelligence to solve for acoustic velocity of the rock layers.

In addition, CGX has engaged Rock Solid Images from Houston to estimate the reservoir properties of lithology, porosity and pore fluid from the seismic data within our identified targets. In the middle and upper Cretaceous formations of West Africa, Rock Solid Images, rock physics and seismic inversion experience have been effective in achieving these goals.”

Kerry Sully, President & CEO stated, “The cost estimate to drill the Eagle Deep Well has been reduced significantly to below US$70 million from US$90 million as a result of the industry-wide downturn, service sector price reductions and CGX’s rig sharing initiatives with other operators in the area.

As the seismic processing nears completion, CGX plans to reopen its data room for potential joint venture partners who would fund the drilling of a well to test both the Eagle Deep play in the Cretaceous and the original Eagle Tubidite in the Tertiary.”

CGX Energy Inc. is a Canadian-based oil and gas exploration company.