From: Caribbean360.com

http://www.caribbean360.com/News/Bus...

GEORGETOWN, Guyana, May 14, 2009 - A Canadian-based oil and gas exploration company will begin drilling for oil offshore Guyana as early as next year.

CGX Energy Incorporated was given the green light to commence operations after Guyana in 2007 won the Maritime Arbitration Award, following the long maritime border issue with neighbouring Suriname.

CGX President and Chief Executive Officer (CEO) Kerry Sully said the company has since gone far ahead in its plans to commence drilling.

"We are confident that we are going to make a drilling commitment to the government. We don't know where but that doesn't preclude us from working our way through things such as environmental approvals to drill and planning to design a drill programme, such that when our final decision is made that we can proceed on an opportune basis," Sully explained.

Explaining the technicalities of the operation, Sully noted that it takes approximately 75 days for drilling and testing. If a discovery is made, the company would proceed to drill appraisal wells to confirm the accuracy of the seismic or geological survey. That would then be followed by field development.

The CGX boss, in a presentation at the Pegasus Hotel, alluded to a study in June 2000 which concluded that Guyana is the second most attractive under-explored basin in the world with a potential of 15.2 billion barrels of oil.

If an oil discovery was to be made in the Guyana Basin, Sully explained, production targets would be estimated at 50 million barrels per year which would be equivalent to 140,000 barrels per day.

Government would receive 53 per cent, and the oil company 43 per cent of the earnings. It has also been projected that a find could result in employment for 650 persons per year.