CANADIAN exploration company CGX Energy Inc yesterday announced that it has moved to raise US$15 million in financing to be used to help fund its drilling activities offshore Guyana, scheduled to commence during the first half of 2011.
This is according to a press release from Markerwire. According to the release, the Common Shares will be offered in all provinces of Canada, with the exception of Quebec, by way of a short form prospectus.
The release said closing is expected to occur on or about December 14, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals.

CGX Energy Inc has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Genuity Corp., Macquarie Capital Markets Capital Ltd., GMP Securities L.P. and Toll Cross Securities Inc. to issue 16,750,000 common shares at a price of US$0.90 per Common Share for aggregate gross proceeds of US$15,075,000.
“One of the good things about our opportunities is that the capital costs and operating costs per barrel are going to be low. Also, we are in an attractive fiscal regime and as a result, this property would probably be economic at US$30.00 crude. Today, there are fewer places in the world where that would be the case,” President and CEO of CGX Energy Inc, Kerry Sulley, said some weeks ago.
Sully had said he believes that the offshore region of Guyana and Suriname is now becoming one of the most attractive basins in the world.
CGX holds three licences offshore Guyana, stretching some 400km from the Venezuelan border in the north, to the Suriname border in the south. Using 2-D seismic technology, CGX has identified with five giant targets offshore, and undertook a 2,375 sq km 3-D seismic programme on its offshore Corentyne and Georgetown licenses.
An independent report from Gustavson Associates showed CGX held a resource estimate of 2.8 billion barrels on three prospects on the Corentyne Concession.