CGX chalks up US$8.5M second quarter loss

Jul 25, 2013 News

Canadian oil exploration firm, CGX Energy has reported a second quarter loss of US$8.5M.
CGX, which failed to find oil last year in its offshore concession off Corentyne, Berbice, made the announcement Tuesday in its release of its unaudited consolidated financial results for the quarter ended June 30, 2013.
“CGX Energy reported a net loss of $8,548,852 or $0.13 per share for the three month period ended June 30, 2013, compared with a net loss of $94,093,285 or $2.88 a share for the same period in 2012.”
According to CGX, with the exception of items relating to the special committee process that was undertaken and the change of control payments made due to the investment by Pacific Rubiales Energy Corp. (“Pacific Rubiales”), the company’s general and administration costs decreased in the second quarter due to a reduction in all non-essential purchases and travel.
“The company will continue to evaluate further cost cutting initiatives and is determined to keep general and administrative costs at current or lower levels going forward.”
As at June 30, 2013, the Company’s working capital increased to $13,361,347 from a working capital deficiency of $12,650,761 as at December 31, 2012.
On April 26, 2013, the company closed a brokered private placement, raising CDN $37,008,900 by issuing 37,008,900 post-consolidation units at a price of CDN $1.00 per Unit. In connection with the private placement, the company’s board of directors and its senior management team have been changed.
“The company is now in the process of re-interpreting seismic data to define the next prospect to be drilled on the Corentyne PPL with the assistance of Pacific Rubiales and its technical staff. In the short term, the Company will likely require additional equity financing and will seek to widen its shareholder base with a view to longer term farm-out transactions to enhance shareholder value.”
In April, CGX in a major shakeup accepted the resignation of Kerry Sully, former President and Chief Executive Officer.
The cash-strapped company failed to find oil in commercial quantities last year on its Corentyne concessions offshore Berbice and in another well offshore Georgetown, which it partnered with Repsol. It ended up owing huge sums for operating expenses to Repsol Exploración S.A, its partners for that Georgetown well.
CGX announced a financial deal with Pacific Rubiales on March 25 which saw the new management dropping several executives.
Guyanese-born Dr Suresh Narine, John Cullen and Dennis Pieters will remain on the Board. Iacono and Narine will each serve as Co-Chairman of the company.
CGX had also announced that Pacific Rubiales would effectively control 74.6 per cent of the issued and outstanding shares in the capital of the company.
Guyana is pinning its hopes on CGX and a number of other operators to find oil to ease pressure on the country’s large fuel import bill.

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CGX chalks up US$8.5M second quarter loss

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The Glenn Lall Show|| February, 10th, 2025

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