Canadian oil exploration company CGX Energy Inc has said it was encouraged by recent statements by the presidents of Guyana and Suriname to avoid expenditure on conflicts and focus scarce resources to improve the welfare of their peoples.

A press release issued by the CGX yesterday referred to the recent developments of the 22nd Meeting of the Conference of the CARICOM Heads of Government in The Bahamas where presidents Bharrat Jagdeo and Ronald Venetiaan of Guyana and Suriname reportedly spoke about building bridges of friendship, good neighbourliness and peaceful co-existence.

Meanwhile, CGX has initiated a flow through private placement, consisting of 1,650,000 common shares priced at US$0.40 per share for total proceeds of US$660,000.

The funds will be used for low-risk oil and gas exploration in Alberta and British Columbia, Canada.

"CGX is taking advantage of current market conditions and utilising its strong management expertise in the development of oil and gas opportunities in Canada to generate sufficient cash flow to increase its treasury and cover ongoing operations," CGX president Kerry Sully was quoted in the release as saying.