CGX Energy Inc. has announced that an independent resource assessment by Gustavson Associates LLC (Gustavson) of Boulder, Colorado, USA for three prospects on the company’s Corentyne offshore Petroleum Prospecting Licence (PPL) has indicated an estimated 2.8 billion barrels of oil off Guyana’s Corentyne shore.
“Using probabilistic analysis, Gustavson calculated a total best estimate (P50)Prospective Resource as of February 1, 2010 in three prospects to be 2.8 billion barrels of oil,” the Canadian-based CGX said in a statement.
The Report is limited to an estimate of the potential undiscovered oil and gas prospective resources underlying the Corentyne Offshore PPL, and CGX said the assessment was done in an area covering approximately 9,180 sq kilometers net.
As of February 1, 2010, CGX said it held an interest in four Petroleum Agreements (PA) covering approximately 34,723 sq kilometres gross (approx. 28,197 sq km net) offshore and onshore Guyana.
Each PA corresponds to a separate Petroleum Prospecting Licence (PPL), with the exception of the Corentyne PA, that is split into three PPL’s – the Corentyne Offshore PPL, the Corentyne Annex PPL, and the Berbice Onshore PPL.
CGX Energy Inc. has a 100% working interest in the Corentyne offshore PPL, the Corentyne Annexe PPL, and the Pomeroon PPL; a 25% working interest in the Georgetown PPL; and a 62% working interest in the Berbice PPL through its subsidiary, ON Energy Inc.
No commercial discoveries have been made in the offshore Guyana basin and hence there have been no reserves found. Historic well data, regional geology and 2D and 3D seismic were reviewed by Gustavson to prepare a probabilistic  Prospective Resource Estimate of that portion of the prospects lying entirely  within the Corentyne PPL.
Prospective resources are those quantities of oil and gas estimated to be potentially recoverable from undiscovered accumulations.
If discovered, they would be technically and economically viable to recover. However, there is no certainty that the Prospective Resources will be discovered.
“We’re very happy to have this independent concurrence of our work by Gustavson Associates,” stated Warren Workman, Vice-President of Exploration for CGX.
The release stated: “In the January 3, 2008 report, the low, best and high estimates for the sum of prospects were 1.13; 2.75; and 6.23 billion barrels respectively, a similar probability distribution of prospective resource as contained in the new report by Gustavson.
CGX  had earlier  announced its readiness this year to commence drilling.
The company was given the green light to commence operations uninterrupted, after Guyana in 2007 won the Maritime Arbitration Award, following a long maritime border issue with neighbouring Suriname.
Since then the CGX Energy Incorporated has done a significant degree of work.
CGX is a Canadian-based oil and gas exploration company focused on exploration for oil in Guyana, South America.  The company is managed by a team of experienced oil and gas and finance professionals from Canada, United States, and the United Kingdom.
CGX is financed internationally and has thousands of shareholders.