CGX Energy Incorporated and its subsidiary, ON Energy Inc., have begun the second phase of exploration of the 800,000-acre Berbice Block, located onshore Guyana.
The second phase of the two companies' exploration process, expected to cost US$1.2 million, will include approximately 190 kilometers of 2-D seismic "to enhance the targets identified in our phase one geochemical and aeromag surveys," CGX Energy Inc. said in a news release from Toronto, Canada, faxed to the Chronicle yesterday.
"The geomicrobal survey identified more than 20 anomalous leads, one of which is approximately 40 square kilometers in areal extent. The 2-D seismic program is planned to identify the depth and thickness of the potential reservoirs that could contain hydrocarbons that are associated with most of the anomalies," the statement explained.
CGX anticipates that Seis Pros Inc. of Houston, Texas, will complete the 2-D program on the Berbice Block over the next two months and that processing and interpretation will take another two months.
"We intend to conduct a seismic program that has low impact on the environment and maximum impact on the local economy," said CGX Vice President of Exploration and ON President Warren Workman in the statement. "We're going to use very portable equipment to drill the shot holes."
CGX Energy Inc. is a Toronto-based oil and gas exploration company and, with Guyana-registered ON Energy Inc., is focusing on exploration for oil in the Guyana basin. CGX is managed by a team of experienced professionals from Canada, the U.S., and the United Kingdom and is financed internationally by more than 5,000 shareholders worldwide.
The two companies are exploring on 800,000 acres of the Berbice Block held by ON Energy and plan to employ about 150 people.
CGX, which originally meant to conduct offshore exploration after preliminary feasibility surveys revealed the existence of more than 850 million barrels of oil reserves, has had to concentrate exclusively on onshore drilling after Surinamese gunboats forcibly removed its exploration rigs on June 2, 2000.
The company anticipates onshore exploration producing up to 100 million barrels of oil and raised US$3.2 million to advance exploration in the first phase of the onshore process.