June 20, 2008

CGX advances JV plans, possible bid date in July

Business News Americas

Canada's CGX Energy (TSXV: OYL) will begin talks with consultancy Jefferies Randall & Dewey to advance plans to incorporate a JV partner for the Corentyne offshore license in Guyana, according to CGX president and CEO Kerry Sully.

"We will be in discussions with Jefferies over the next 10 days or so on establishing a bid date, perhaps in July," Sully said at CGX's annual and special shareholder meeting.

A number of parties have gone through the dataroom, according to the executive, who did not release the names of possible JV partners.

"We do feel we have put together... a very successful JV proposal," said Sully, adding CGX has the cash to carry out the Corentyne program by itself.

Earlier this month, CGX announced subsidiary CGX Resources had awarded Norway 's Fugro-GeoTeam a contract to carry out 500km2 of 3D seismic on Corentyne. This work is due to begin by early September.

US firm Gustavson Associates has calculated a total best estimate (P50) prospective resource of four Corentyne prospects to be 2.7Bb of oil.

GEORGETOWN LICENSE

For his part, CGX exploration VP Warren Workman said Spain 's Repsol YPF (NYSE: REP) is finalizing a contract with Fugro-Geo to carry out 1,000km2 of 3D seismic on the Georgetown offshore license.

CGX has a 25% stake in Georgetown and Repsol YPF 75%.

An announcement is expected in coming days, Workman said.

The Canadian company's Guyana licenses cover 9.5mn acres gross (3.85mn ha), 7.2mn acres net.