CGX pushes back drilling schedule, stock plunges

Apr 11, 2012 News

Stock in CGX Energy Inc. closed down more than 11 per cent after heavy trading

CGX Energy has announced that drilling operations will be completed at the end of April, causing its stock to fall

yesterday following the announcement of a delay in completion of drilling on its Eagle-1 offshore well in Guyana.
CGX in a statement said “minor mechanical issues” on the Ocean Saratoga semi-submersible rig and weather conditions had pushed back completion of drilling beyond the originally planned 60 days.
“It is now anticipated that drilling operations will be completed near the end of April,” the company said in a release.
On the TSX Venture Exchange, CGX stock was down 14 cents, or 11.3 per cent, to close at $1.10 after earlier tumbling as much as 15 per cent. Volume was some 4.5 million shares, more than four times the issue’s daily average of just over one million shares.
CGX Energy is a Canadian-based company focused on the exploration for oil in the Guyana-Suriname Basin off Corentyne. It started drilling earlier this year.
Repsol, a Spanish-owned company which has formed a conglomerate to drill in the Jaguar 1 location 100 miles offshore Georgetown, is currently also drilling.
A team, including President Donald Ramotar, visited that rig recently to inspect operations and to receive an update.