CGX Stops Repsol, RWE Dea Farm-Out Deal in Guyana
- Business & Finance
CGX Energy Inc. announced today that its wholly-owned subsidiary, CGX Resources Inc., obtained an injunction order from the Commercial Court of Guyana restraining Repsol Exploracion, S.A. (“Repsol”) from proceeding with the 30% farm-out of the Kanuku petroleum prospecting license to RWE Dea AG pending the hearing and determination of the arbitration proceedings started by CGX Resources against Repsol.
On December 23, 2013, CGX Energy announced the start of an arbitration proceeding under the rules of the London Court of International Arbitration against Repsol in connection with the expiry of the petroleum prospecting license covering the Georgetown Block.
Dewi Jones, Chief Executive Officer of the Company, commented: “CGX Energy is pleased with the decision of the Commercial Court and will continue to work towards protecting the interests of its shareholders by pursuing this claim against Repsol.”
Professor Suresh Narine, Co-Chairman of the Company, added: “When the Georgetown Block partners decided to cease drilling and plug the Jaguar 1 well due to safety considerations, CGX Energy immediately indicated its intention to continue exploring the Georgetown Block because we strongly believe in its prospectivity, as we indeed strongly believe in the prospectivity of the Guyana-Suriname basin. This latest step with the courts in Guyana seeks to further protect our shareholders’ rights with regards to the results uncovered by the Jaguar 1 well. CGX Energy has a long history of operating and in supporting law and order in the basin and this injunction is a significant endorsement of those who want to ensure an orderly functioning of the petroleum industry in Guyana as more players enter into the basin.”
Press Release, January 20, 2014