Seismic tests begin in Berbice 'oil' search
Stabroek News
March 26, 2004
CGX Energy Inc and its subsidiary, ON Energy Inc, have started the second phase of exploration on the 800,000 acre Berbice Block.
The second phase of exploration will include approximately 190 km of 2-D seismic to enhance the targets identified in Phase 1 which included geochemical and aeromag surveys.
Around 20 local investors have paid $542,000 to buy 14% of on Energy in the prospect of finding oil in Berbice as part of a public offering.
A CGX press release says additional financing will be required within ON Energy to complete the 2-D seismic programme. CGX will support that financing as it evolves.
CGX says the geomicrobial survey identified more than 20 anomalous leads, one of which is approximately 40 square kilometres. The 2-D seismic programme is planned to identify the depth and thickness of the potential reservoirs that could contain hydrocarbons that are associated with most of the anomalies. Over the next two months, Seis Pros Inc. of Houston, Texas will complete the 2-D programme on the Berbice Block. Processing and interpretation is estimated to take another two months. Seismic acquisition will be focused on areas of significant geochemical anomalies, reducing the cost normally associated with exploratory seismic surveys covering a broad area.
The budget for phase 2 is approximately US$1.2 million. Following interpretation of the seismic, phase 3 will initiate drilling exploration wells to test seismically-defined anomalies.
A source knowledgeable of the process says the seismic tests only indicate areas where oil might be but not usually its presence. Only in the drilling stage will this be properly ascertained.
Warren Workman, Vice President of Exploration of CGX and President of ON said in the release, "We intend to conduct a seismic programme that has low impact on the environment and maximum impact on the local economy. We're going to use very portable equipment to drill the shot holes. For the programme, we'll employ about 150 people - 80 hired directly by our subcontractors and the rest through support services.
CGX / ON Energy are extremely pleased with the support and cooperation they received from the Berbice Community during the geochemical field operations and look forward to this ongoing relationship and goodwill during phase 2 of the low impact seismic exploration."
CGX Energy Inc is traded on the toronto stock exchange under the ticker symbol OYL.U