CGX seeks US$10M
Stabroek News
April 30, 2004
CGX Energy Inc is seeking to raise up to US$10 million in a private equity placement to help fund its exploration and development activities, the company announced on Monday.
The junior gas company said it would offer more than 13.3 million units for US0.75 cents each through a financing arrangement with Octagon Capital Corp in Canada.
Proceeds from the placement will be used to fund exploration and development, including drilling of exploration wells in Guyana through CGX's subsidiary company, ON Energy Inc.
Funds will also be used to advance some of CGX's offshore properties and for general corporate purposes, the company said.
Shares in CGX (TSXV:OYL.U) were up three cents to 72 cents in trading on Monday on the TSX Venture Exchange.
GCX last week recorded the first seismic images at its onshore concessions along the Corentyne Coast. They were the first seismic images recorded along Guyana's coast since the 1940s and the government has pinned much hope on an oil find.
CGX is hoping to drill exploratory wells in Guyana by August.