An independent resource assessment for three prospects on CGX Energy’s Corentyne Offshore Petroleum Prospecting Licence (PPL) located offshore Guyana has come up with a total best estimate of 2.8 billion barrels of oil.
The assessment was completed by Gustavson Associates LLC of Boulder, Colorado, USA. Gustavson is a global consulting firm consisting of geologists, geophysicists, engineers, land and contracts managers as well as economists and financial experts who solve problems on all aspects of natural resource evaluations.
The report by Gustavson is limited to an estimate of the potential undiscovered oil and gas prospective resources underlying the Corentyne Offshore PPL that covers approximately 9,180 square kilometres net to CGX.
As of February 1, 2010, CGX held an interest in four Petroleum Agreements (PA) covering approximately 34,723 square kilometres gross off and onshore Guyana.
Each agreement corresponds to a separate Petroleum Prospecting Licence (PPL), with the exception of the Corentyne agreement which is split up into three PPL’s - the Corentyne Offshore PPL, the Corentyne Annex PPL, and the Berbice Onshore PPL.
No commercial discoveries have been made in the offshore Guyana basin and hence there have been no reserves found.
Prospective Resources are those quantities of oil and gas estimated to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover. However, CGX stated that there is no certainty that the Prospective Resources will be discovered.
“We’re very happy to have this independent concurrence of our work by Gustavson Associates,” stated Warren Workman, Vice President Exploration for CGX. “Subsequent to a prior Report by Gustavson that was filed on January 3, 2008, CGX shot, processed and interpreted 505 square kilometres of 3D seismic yielding better clarity on the geology and extent of the specific Prospects.”
CGX is a Canadian-based oil and gas exploration company focused on exploration for oil in Guyana, South America. CGX is managed by a team of experienced oil and gas and finance professionals from Canada, U.S.A. and the UK. CGX is financed internationally and has thousands of shareholders worldwide.