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SOURCE CGX Energy Inc.
(TSX-V | OYL)
TORONTO, March 11, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or
the "Company") announces that the Pomeroon Petroleum Agreement (PA)
expired effective November 19, 2012.
The Pomeroon PA was issued to Century Guyana, Ltd. in November 1997 and
was purchased by CGX in January 2004. As has been reported since 2007,
the Company has been in discussions with the Government of Guyana
regarding modification of the Pomeroon PA that would have extended the
PA to November 2013. During these discussions the Company was advised
that the November 1997 Pomeroon PA reverted to the Government effective
November 19, 2012. Additionally, the Company's Georgetown PA expired
November 25, 2012, as disclosed in the 2012 third quarter financial
statements. The costs associated with these licenses as at September
30, 2012 was approximately $2 million in relation to the Pomeroon PA
and $51 million in relation to the Georgetown PA.
As a result of these licenses having expired in November 2012 and the
Company's current uncertainty relating to these licenses, the Company
may record an impairment of the full carrying amounts in its year end
2012 financial statements. In the event that the Company secures the
renewal of the licenses, the Company will revisit any impairment
previously recorded.
About CGX Energy
CGX is a Canadian-based oil and gas exploration company focused on the
exploration of oil in the Guyana-Suriname Basin, an area in which the
United States Geological Survey estimated a Pmean oil resource
potential of 13.6 billion barrels in their Assessment of Undiscovered
Conventional Oil and Gas Resources of South America and the Caribbean,
2012. CGX is managed by a team of experienced oil and gas and finance
professionals from Guyana, Canada, the United States and the United
Kingdom.
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