It has seen positive results from the 4,000 of the 8,000 samples it has analysed for microbes that flourish in the presence of hydrocarbon microseepage.

A release from its Toronto office says, "A number of significant sized areas with seepage readings well above background have been identified.

It also quotes its vice- president for exploration, Warren Workman as saying, "We are pleased by the initial results" and that "as a result of the favourable sampling, additional infill samples on the large seepage areas will be analysed."

It also quotes CGX's president, Kerry Sully as saying, "Our preliminary exploration is proceeding well and we look forward to an accelerated exploration programme early in the New Year."

He said too that the analogies in the basin are the Tambaredjo and Calcutta onshore oilfields in Suriname. Tambaredjo has reserves estimated at 167 million barrel and Calcutta 15 million.

The 8,000 samples were taken in October from its 800,000-acre on-land concession in the Berbice area which is held by CGX's wholly owned subsidiary, ON Energy INC, a company registered in Guyana.

The Oklahoma-based company GeoMicrobial Technologies conducted the collection of the samples and is carrying out the analysis of the samples at its US laboratories.

Earlier this month CGX announced that it has successfully raised US$2.3M to advance its exploration programme on its extensive onshore and offshore concessions here.

ON Energy has filed a prospectus with the local stock exchange to raise up to US$750,000 in Guyana, which if the full amount is subscribed would decrease CGX's share to 80 per cent. The release said that subject to regulatory approval, the closing will be extended to December 19, and is subject to raising a minimum of US$500,000.

CGX shifted to its onshore concessions earlier this year. It is adjacent to its offshore concessions in Guyana's territorial waters from which Surinamese gunboats in June 2000 ejected its oilrig from its drilling position.