CGX Energy Inc., the Canadian-based oil and gas exploration company, has increased the size of planned exploration financing from US$6 million to US$7.5 million as a result of higher institutional demand for the offering, according to a press release from the company in Toronto, Ontario.
The offering, led by GMP Securities Ltd and including Raymond James has been increased by 3,000,000 common shares for a total of 15,000,000 common shares. The closing date will remain as scheduled for August 5, the release noted.
The proceeds from the private placement will be used to fund exploration and development activities, including drilling of onshore exploration wells in Guyana through CGX's subsidiary company, ON Energy Inc. and to advance certain of CGX's offshore properties and for general corporate purposes.
Completion of the sale of the common shares remains subject to the acceptance by the TSX Venture Exchange and to the completion of definitive transaction documentation.
CGX Energy Inc. is focused on the exploration for oil in the Guyana basin and is actively looking at other international opportunities, the release stated. The company which is financed internationally and has shareholders worldwide is managed by a team of experienced oil and gas and finance professionals from Canada, USA and the UK.