The Berbice License is held by ON Energy Inc. ("ON"), a 62%-owned subsidiary of CGX and comprises 814,194 gross acres (3,295 square kilometres) onshore Guyana.
With analogs similar to the Tambaredjo and Calcutta fields onshore Suriname which have reserves in excess of 1 billion barrels and produce 16,000 bbls/d, CGX formed ON in September 2003 and transferred its onshore portion of the former Corentyne License and ON acquired the former Berbice License.
In 2003, ON completed a very large geochemical survey and reinterpreted existing aeromagnetic data. A labour intensive 2D seismic survey was conducted, employing up to 250 local personnel. Drilling commenced in May 2005, with the Yakusari well which was drilled to a depth of 2,901 feet and abandoned. Following Yakusari, ON drilled the Hermitage well to a depth of 6,337 feet and encountered significant gas shows in the lower section of the hole, however the well was abandoned due to poor reservoir rock quality and modest reservoir thickness. The final well, Albion, was drilled to a depth of 6,442 feet and was abandoned after evaluation of petrophysical well logs. Subsequent to these disappointing results, a third party review concluded that the most attractive exploration fairway on the Berbice License exists further inland, with a potential trap being formed against the rising basement rock. ON is looking to farm-out future exploration obligations.
On February 12, 2013, the Government of Guyana issued a new Berbice License that combines the former onshore portion of the former Corentyne License and the former Berbice License. The Berbice License is renewable after four years for up to ten years and during the initial period of four years, ON has an obligation to conduct an airborne survey comprising a minimum of 1,000 square kilometres and either conduct a 2D seismic survey comprising a minimum of 100 square kilometres or drill one exploration well.