CGX Energy Inc., a Canadian petroleum exploration company operating in Guyana is negotiating agreements with third parties that may lead to farming out one or more of its prospecting licences.

That will be done so that CGX can continue exploring with others, President and Chief Executive Officer (CEO), Mr. Kerry Sully disclosed.
The term farm-out refers to the turning over of an aspect of a business in return for the payment of a fixed sum.
In a release, earlier this week, Sully said that, under one agreement, the company will receive minimum non-refundable payments of US$4M in consideration of granting the third party an opportunity to receive and analyse seismic and well data.
On the company’s 25 percent held Georgetown petroleum prospecting licence (PPL), he said CGX was  pleased to report that the Guyana Geology and Mines Commission (GGMC) Petroleum Division has been asked to work with Repsol towards formalising arrangements to facilitate their seamless continuation in exploring it.
The partners to the Georgetown PPL include Repsol Exploración S.A. (15 percent), as operator; CGX Resources Inc. (25 percent); Tullow Oil Plc (30 percent) and YPF Guyana Limited (30 percent).
The current tenure for this section should expire in late November 2012 and Kelly confirmed that formal applications have been submitted, to the Government of Guyana, for the re-issuance of its operated offshore and onshore PPLs.
The Chairman of CGX, Guyanese Mr. Suresh Narine said: “The cooperation received from the Government of Guyana on both licence re-issues and farm-outs has been of great assistance in advancing these initiatives.”