June 27, 2008

Jagdeo urges CGX to speed seismic work

Stabroek News

GEORGETOWN, GUYANA  -- President Bharrat Jagdeo has urged Canadian exploration outfit CGX Energy Inc to quickly go through its 3D seismic survey and commence drilling since that is the only way to tell whether or not petroleum - in commercial quantities - is below the surface.

Speaking at a press conference at the Office of the President on Wednesday, Jagdeo said that he met officials from the company while on a recent visit to Toronto, Canada.

According to the President, the company said that the seismic work will begin by September. "I told them they need to move more quickly from seismic to drilling.they assured me that they are working to do that," Jagdeo said.

CGX has awarded a contract to Fugro-Geo Team for a vessel to undertake four weeks of 3D marine seismic work in the Guyana Basin. The contract value is estimated to be US$13M and it is to be executed on a 500 square kilometre parcel.

The President said that he met also with Groundstar Resources, an oil exploration company setting up to drill in the in the Takutu Basin.

"They said that by the end of this year, or [into] next year, they will start drilling," he said.

Petroleum companies Repsol YPF and Exxon are also in the hunt for offshore finds and will also be undertaking seismic work.