Financial lifeline given to cash strapped Canadian oil exploration company C.G.X – 28th Feb 2013
After investing in exploration activities for oil and gas over the last fifteen years, Canadian oil company, CGX Energy Inc, has announced new partnerships with GMP Securities and Pacific Rubiales Energy Corporation, a Colombian Oil company.
According to CGX’s Executive Chairman, Professor Suesh Narine, GMP Securities will inject a maximum of 40 million Canadian dollars in connection with a proposed private placement and Pacific Rubiales will provide both technical and financial assistance to the cash strapped CGX.
The Canadian-based oil exploration company ran into financial problems last year, after two offshore wells it drilled came up dry.
With the involvement of Pacific Rubiales, it is expected that there will be a shakeup in the management structure of the Company.
Co-Chairman and Executive Director of Pacific Rubiales, Serafino Iacono said, with the many successes the company has in the past, it sees the Guyana basin as a major player in the oil and gas business.
He said the company is bringing its expertise to this new partnership with the aim of finding petroleum.
Meantime, Chairman of the Georgetown Chambers of commerce, Clinton Urling said, the oil and gas sector has the potential to transform Guyana’s socio-economic infrastructure.
But this can only happen if there are sufficient mechanisms in place to safeguard the sector.
ThebUnited States Geological Survey estimated that the Guyana basis has some 13.6 billion barrels of oil.