CGX Energy Announces Third Quarter Results and Operational Update

Toronto, Ontario--(Newsfile Corp. - November 4, 2020) - CGX Energy Inc. (TSXV: OYL) ("CGX Energy" or the Company") announced today the release of its unaudited Consolidated Financial Statements for the third quarter of 2020 ended September 30, 2020, together with its Management's Discussion and Analysis - Quarterly Highlights ("MD&A"). These documents will be posted on the Company's website at www.cgxenergy.com and SEDAR at www.sedar.com. All values in this news release and the Company's financial disclosures are in United States dollars unless otherwise stated.

Third Quarter and Recent Highlights

The Company held its annual and special meeting of shareholders (the "AGM") on Wednesday September 30, 2020, where each of the five nominees proposed as directors in CGX Energy's management proxy circular dated August 17, 2020 (the "MPC") were elected as directors of the Company. The directors proposed in the MPC achieved an average approval vote of 99.8% from CGX Energy's shareholders. The detailed results of the vote at the AGM are set out below:

NomineeOutcome of VoteVotedVoted (%)
Gabriel De AlbaApprovedFor: 213,216,579
Withhold: 471,125
99.8%
0.2%
Dennis MillsApprovedFor: 213,287,666
Withhold: 400,038
99.8%
0.2%
Suresh NarineApprovedFor: 213,118,595
Withhold: 569,109
99.7%
0.3%
Duncan NightingaleApprovedFor: 213,202,261
Withhold: 485,443
99.8%
0.2%
Hermann TribukaitApprovedFor: 213,205,146
Withhold: 482,558
99.8%
0.2%

 

Operational Update - Oil and Gas Assets

As the global pandemic related to Coronavirus disease 2019 ("COVID-19") continues, CGX has continued with its plan to protect the health and safety of its employees and all stakeholders. The Company's alternative working arrangements for employees to work from home in Canada, Guyana and the USA are still in place.

Operational activities in Guyana have been affected throughout most of 2020 due to the COVID-19 Pandemic. The Company continues to have constructive collaborative discussions with the regulatory authorities in Guyana regarding work commitments in that country. The Company looks forward to continuing this discussion with the Government of Guyana.

Drilling Program

CRI, the operator of the Corentyne Block under a Joint Operating Agreement ("JOA") with Frontera Energy Guyana Corp. ("FEGC"), completed its evaluation of the recently processed 3D seismic campaign covering the northern region of the Corentyne Block. As previously announced on August 6, 2020, CRI has identified multiple high potential prospects. CRI's current high-graded prospect identified in the northern region of the Corentyne Block has been named Kawa.

CRI completed a pore pressure analysis of the Corentyne Kawa prospect, performed by Baker Hughes in September 2020. The pore pressure analysis on the Demerara block F-prospect was also completed in October 2020.

CRI contracted and completed a Quantitative Interpretation (QI)/AVO study to further high grade the prospect inventory on the Corentyne block during the second and third quarters of 2020.

CRI finalized an agreement for the reprocessing of the 3D seismic over the Demerara Block. The reprocessing is expected to take approximately 7 months to complete.

Deep Water Harbor

In October 2020, the Company entered into various contracts to recommence work on its Berbice Deep Water Port project (the "Port"). Currently, the Company is completely refurbishing a 3.1 km road leading from the Corentyne Highway to the Port and is in the process of tendering for the construction of a bridge leading from the Corentyne Highway to Seawell Village, which connects to the road leading to the Port site. The Company has also entered into contracts for the relocation of utility services and extension of utilities to the Port site. The contract for the road commenced on October 18, 2020 and is expected to be completed at a cost of approximately $703,000.

Website

The Company has launched its new website at www.cgxenergy.com.

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 certain statements or disclosures relating to the Company that are based on the expectations of its management as well as assumptions made by and information currently available to the Company which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "expect", "prospect", "will" and other similar words suggesting future outcomes or statements regarding an outlook.

In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: the Company's exploration and development activities; expenditures; infrastructure projects; the Company's drilling prospects; and governmental and regulatory approvals and agreements.

The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of the Company including, without limitation: prevailing and future commodity prices and currency exchange rates; applicable royalty rates and tax laws; interest rates; future well production rates and reserve volumes; operating costs, the timing of receipt of regulatory approvals; success obtained in exploration, development and production activities; anticipated timing and results of capital expenditures; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the global, Guyanese, Surinamese and other economies; the state of the oil and natural gas exploration and production industry; the availability and cost of financing, labour and services; and ability to market crude oil and natural gas. In particular, except where otherwise stated, the Company has assumed a continuation of existing business operations on substantially the same basis as exists at the time of this news release.

The Company believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation, those risks described in the MD&A.

The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. Risks and assumptions that could cause actual results to differ materially from those anticipated in these forward-looking statements are described in the Company's Annual Information Form for the year ended December 31, 2019, dated March 5, 2020. Although the Company has attempted to take into account important factors that could cause actual operating results to differ materially, there may be other unforeseen factors and so results may not be as anticipated, estimated or intended. The forward-looking statements are expressly qualified by this cautionary statement.

For further information, please contact: Tralisa Maraj, Chief Financial Officer at (832) 300-3200

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/67527

info