CGX Energy Inc concluded a US$2.3M private placement on December 1 to finance further on/offshore exploration activities in Guyana.
Onshore Energy, the local subsidiary of CGX, has recently concluded geochemical sampling on an area of 377,500 acres in the Berbice Block and the 8,000 samples are in Oklahoma for analysis for microbes associated with micro seepage of hydrocarbons from underlying reservoirs. The results from the geochemical sampling are expected next month and the firm is anticipating positive results.
Kerry Sully, President and Chief Executive Officer of CGX in a statement on Tuesday says CGX has also reinterpreted regional aeromagnetic data and has identified basement highs and a number of significant sub-surface faults, which could lead to structures that will trap hydrocarbons.
"Our hope is to find areas where geochemical anomalies overlie these structures," Sully said. The geochemical anomalies from the Staatsolie onshore Suriname exploration led to CGX pursuing exploration on its Corentyne Block.
He said that encouraged by its initial analysis, CGX has licensed an additional 387,000 acres from the government to increase the size of its Berbice onshore block to over 800,000 acres.
"Using geochemical and aeromagnetic data, we are completing our preliminary survey of a very large area for less than US$600,000. The funds just raised will allow us to follow up any positive results with 2-D seismic or drilling," Sully said in the statement.
The Berbice block has seen seven wells drilled in the past by Shell and one by a Trinidad company, Lease-holds, as far back as 1942.
CGX Energy is a Canada- based oil and gas exploration company exploring in the Guyana basin and has over 5,000 shareholders.