CGX is to move to the next stage of exploration for oil in the onshore 800,000-acre Berbice concession, held by its Guyanese subsidiary, ON Energy Inc.
ON Energy will need additional financing to proceed with a 2-D seismic programme, the next stage of the exploration and CGX will support that financing as it evolves, a CGX release from its Toronto office yesterday said.
The release said the analysis of a survey which CGX conducted in October has "identified more than 20 anomalous leads, one of which is approximately 40 square kilometres in areal extent."
As a result, CGX is currently preparing to identify the depth and thickness of the source of "the micro seepage of the hydrocarbons that are associated with several of the larger anomalies."
Warren Workman, the company's vice president for exploration is quoted as saying, "We are now in the process of finalising our integration of the geochemical study with our reprocessed aeromagnetic data."
The release said that every other one of the 8,000 samples collected in October was analysed at the GeoMicrobial Technologies Laboratory in Oklahoma and "infill analysis of over 1,000 samples in areas of high readings has significantly improved the definition of the leads."
The "highly acidic nature of the soil in the area has limited the effectiveness of sorbed gas analysis from the current shallow samples, however one set of the deeper samples indicates better concentration of hydrocarbons... so CGX plans a limited number of deeper sampling sites..." This will be done in conjunction with the planned 2-D seismic programme.