OIL and gas exploration companies, CGX Energy  and Repsol Exploración, S.A., which have been locked in a court battle over a Joint Operating Agreement (JOA) on exploration in the Georgetown Block have arrived at an amicable settlement to the dispute, CGX announced Wednesday.

Under the terms of the settlement, CGX Energy received approximately US$900,000 from Repsol Exploración, S.A.,  pursuant to the terms of the Georgetown JOA .
Neither party was responsible for costs or damages.
The two companies , CGX said, were looking  forward to the prospect of working together again in the future if and when the right opportunities arise.
The court battle started  months after  CGX had announced in July 2012  that drilling operations at the Jaguar -1 well  which it had done in partnership with  Repsol Exploración S.A. (15%), as operator,  YPF Guyana Limited (30%) and Tullow Oil plc (30%)  had ended  because of safety precautions.
In May 2013  Repsol Exploración S.A  which is a Spanish oil company  signed an agreement with Guyana to undertake further oil exploration activities off the country’s coast but in the same area where the Jaguar No.1 well was drilled.
In response CGX had complained that it was of the view that the terms of the JOA  governing the Georgetown Block were still in effect when Repsol Exploración S.A.   l allowed the PPL to expire and sought out a new petroleum prospecting license covering virtually identical acreage offshore in Guyana.
CGX described the act by Repsol Exploración S.A.   as a blatant theft of  its property, moreso since Repsol Exploración S.A.    was aware of CGX Energy’s continued interest in the Georgetown PPL and had an obligation to seek renewal of the Georgetown PPL alongside CGX Energy.
In effect  Repsol Exploración S.A.   which only owned 15% of the  license allowed it   to lapse and then subsequently applied for an entirely new license covering substantially the same area covered by the old license and  had  acquired 100% ownership, renaming it the Kanuku Block.
Repsol subsequently sought to sell out  30%  of the Kanuku petroleum prospecting license to a German oil exploration company named  RWE Dea AG.
CGX had stated that these actions amounted to a  blatant act to deprive the CGX shareholders of their rightful percentage of ownership over the license and had taken the matter to the London Court of International Arbitration in December 2013.
Yesterday the company  which is   focused on the exploration of oil in the Guyana-Suriname Basin announced that the matter had been settled in its  favour.
Under the settlement too, CGX said,  Repsol Exploración S.A.   agreed to evaluate opportunities in the Guyana-Suriname basin.
In keeping with this agreement Repsol Exploración S.A.     was  granted by CGX  a ninety (90) day option to present a farm-in proposal to acquire at least a 10% participating interest in any of the three blocks, namely  the Corentyne Block , the  Demerara Block or the Berbice Block.
In addition, CGX Energy and Pacific Rubiales Energy Corp., another oil and gas exploration company,  have been granted a similar option on the Kanuku Block.
In the event that a proposal is accepted, any definitive agreements are subject to the terms of any pre-existing petroleum agreement or JOA, CGX disclosed.