CANADIAN oil company CGX Energy has entered into a short-term loan agreement with petroleum exploration and production giant Pacific Rubiales Energy Corporation for Cdn.$7.5 million to cover certain expenses generated in Guyana in connection with its work commitments here.

The company expects to spud the exploration well on the Corentyne Block by October 2015.
Dewi Jones, Chief Executive Officer of the company, commented: “The bridge loan allows CGX Energy to continue discussions with potential joint venture partners and also commence purchasing long-lead items required to drill our next exploration well on the company’s 100%-owned Corentyne Block, offshore Guyana.”
The bridge loan has a term of twelve months and annual interest payable of 5%.

OPERATIONAL UPDATE
The company has also provided an operational update on its activities in Guyana.
Jones disclosed that as previously announced, the company has entered into a seismic contract with Prospector PTE. Ltd to conduct a 3,116.74 km2 3D seismic survey on the company’s 100%-owned Demerara Block, offshore Guyana.
The seismic survey which is ongoing is expected to be completed in approximately 60 days.
After the completion of the survey, Prospector will be issued common shares in the capital of the company representing approximately 16.6% of the company.
The company, Jones said, is also continuing to work with the technical team at Pacific Rubiales to secure a joint venture partner on its company’s 100%-owned Corentyne Block, offshore Guyana.
Jones noted: “We have been working closely with the technical team at Pacific Rubiales to delineate a prospect on the Corentyne Block and expect to announce the further details on our next exploration well by year-end.”

AMENDING CLAIM
Additionally, on September 29, 2014, the Arbitral Tribunal of the London Court of International Arbitration granted CGX Energy a procedural order amending its claim against Repsol Exploracion, S.A.  to include a claim for amounts owing by Repsol to CGX Energy in the amount of U.S.$889,663 in connection with the drilling of the “Jaguar” exploration well on the Georgetown Block, offshore Guyana, Jones disclosed.
CGX and Repsol Exploracion, S.A. were partners exploring the Georgetown Block when the well had to be abandoned in July 2012 due to safety concerns.
The new claim will be taken up after the January, 2015 hearing during the damages phase of the proceedings, if any, Jones said.
CGX Energy is a Canada-based oil and gas exploration company which remains focused on the exploration of oil in the Guyana-Suriname Basin.

LAW OF THE SEA AWARD
In June 2000, CGX was forced to halt a drilling programme it had started off the Corentyne Coast after gunboats from the Suriname navy ordered the crew and hired rig out of the zone.
Suriname had long claimed part of the border region with Guyana as its territory, and after high-level missions, led by then President Bharrat Jagdeo and then Foreign Minister Clement Rohee, failed to convince the government of then President Jules Wijdenbosch to settle the matter, Guyana took its case to the International Tribunal on the Law of the Sea.
The Tribunal sitting in the Hague in the Netherlands, after almost three years of deliberations, in 2007 handed down an award in Guyana’s favour, preserving 93 per cent of the CGX Corentyne licence as being in this country’s territory.

(By Clifford Stanley)