If CGX cannot raise needed funds, Guyana must explore options – GOGEC

See below the full release from GOGEC: 

Vice President, Dr. Bharrat Jagdeo hinted that CGX Energy Inc. stands to lose the Corentyne block should the company fail to demonstrate its financial capability to move towards a production license and specific terms of commercial development.

The Guyana Oil and Gas Energy Chamber (GOGEC), wishes to register its unequivocal support to the Government for this strong, and no-nonsense stance, on this issue.

In 2021/2022, CGX successfully drilled its operation well, Kawa-1, in the eastern channel sand complex identified in the northern segment of the Corentyne block.

Over the recent years, CGX has reportedly encountered financial difficulties, which, in part may have led to the delay in moving the project towards the development stage.

Notwithstanding, while GOGEC is cognizant of the investments made to reach this level by CGX, if the company cannot raise the financial resources to move forward, then it is in the country’s best interest to explore alternative options to develop and monetize the resources. In this regard, there is a relatively short window within which we have to develop these resources before the country ends up with stranded assets.

Therefore, a decision at the national level is imperative, in view of the foregoing.