TORONTO,
May 29, 2015 /CNW/ - CGX Energy
Inc. (TSX-V - OYL) ("CGX Energy" or the "Company")
announced today the release of its unaudited consolidated financial
results for the quarter ended March 31,
2015, together with its Management Discussion and
Analysis. These documents will be posted on the Company's
website at www.cgxenergy.com and SEDAR at www.sedar.com.
Dewi Jones, Chief
Executive Officer of the Company, commented: "We are encouraged by
the recent announcement from ExxonMobil in connection with their
significant discovery on the Stabroek Block located approximately
120 miles offshore Guyana and
immediately adjacent to our acreage. ExxonMobil has reported
more than 295 feet of high-quality oil-bearing sandstone reservoirs
on their Liza-1 well. With this discovery, we will now move quickly
to determine how best to develop our acreage given our current
financial constraints."
First Quarter 2015 Overview and Highlights
- Financial Results - The Company recorded a net loss of
$837,278 or $0.01 a share for the three month period ended
March 31, 2015, compared with
$1,185,644 or $0.02 a share for the same period in 2014.
- Strategic Partners and New Initiatives – The Company
continues to seek a joint venture partner for all three if its
petroleum prospecting licences and is actively pursuing this
initiative. In the short term, the Company will require
additional financing and seek to widen its shareholder base, but
still with a view to negotiating farm-out transactions as the
primary way to enhance shareholder value.
- Cost Cutting Initiatives – General and administrative
costs increased slightly to $447,593
in the three month period ended March 31,
2015 from $436,269 for the
same period in 2014. These lower costs are consistent with
the prior year and are a continued result of an overall cost
cutting initiative undertaken by the Company in the latter half of
2013 driven by the reduction in non-essential staff and
purchases. In addition, management and consulting fees
decreased to $502,667 during the
three month period ended March 31,
2015 compared to $543,988 for the same period in 2014.
- Rig Agreement – Subsequent to March 31, 2015, the Company received an invoice
for its share relating to the mobilization fee of approximately
$5.6 million under the definitive rig
agreement with Japan Drilling Co., Ltd. and related rig sharing
agreement with Teikoku Oil (Suriname) Co., Ltd., a wholly-owned
subsidiary of Inpex Corporation, for the provision of rig services
for the use of the jack-up drilling rig known as the "HAKURYU-12"
rig. The Company is currently considering all of its
available options under this agreement.
About CGX Energy
CGX Energy is a Canadian-based oil and gas
exploration company focused on the exploration of oil in the
Guyana-Suriname Basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE
Forward-Looking Statements:
This news
release contains forward-looking statements. Forward-looking
statements are frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", anticipate", "estimate",
"may", "will", "would", "potential", "proposed" and other similar
words, or statements that certain events or conditions "may" or
"will" occur in the future. These forward-looking statements are
based on certain key expectations and assumptions made by CGX
Energy. CGX Energy believes the expectations and assumptions on
which it develops forward-looking statements are reasonable;
however, undue reliance should not be placed on forward-looking
statements as there can be no assurance they will prove to be
correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. In
addition, other risks that may affect the forward-looking
statements in this news release are outlined further in the
Company's Annual Information Form dated April 29, 2015 filed on SEDAR at
www.sedar.com.
The forward-looking statements contained in this
news release are made as of the date hereof and CGX Energy
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE CGX Energy Inc.