THE Canadian oil exploration company CGX Energy Inc has received an infusion of capital which it plans to use to fund oil exploration in Guyana.
According to a release from the Toronto-based company, financing received from GMP Securities and Raymond James Ltd. is now US$7.5M, up 25 per cent from an announced investment of US$6M in June.
CGX said it plans to use money towards exploration and development activities, including drilling of exploration wells onshore Guyana through CGX subsidiary ON Energy Inc., as well as upgrading several of CGX off-shore properties.
CGX completed an onshore seismic study in June and announced that drilling in the Berbice area will start as soon as September.
The company is now in its sixth year in partnership with Guyana since then President Janet Jagan signed an agreement for CGX to drill for oil in Guyana’s exclusive maritime economic zone.
In 2000, Suriname gunboats ousted a CGX rig about to start drilling in a concession offshore the Corentyne coast.