CGX Energy Inc. and its subsidiary, ON Energy Inc., reports that the second phase of exploration on the 800,000-acre Berbice Block located onshore Guyana has begun. The second phase of exploration will include approximately 190 km of 2-D seismic to enhance the targets identified in the company’s phase 1 geochemical and aeromag surveys.
The geomicrobial survey identified more than 20 anomalous leads, one of which is approximately 40 square kilometres in areal extent. The 2-D seismic program is planned to identify the depth and thickness of the potential reservoirs that could contain hydrocarbons that are associated with most of the anomalies. Over the next two months, Seis Pros Inc. of Houston, Texas will complete the 2-D program on the Berbice Block. Processing and interpretation is estimated to take another two months. Seismic acquisition will be focused on areas of significant geo-chemical anomalies, reducing the cost normally associated with exploratory seismic surveys covering a broad area. The budget for phase 2 is approximately US$1.2 million. Following interpretation of the seismic, phase 3 will initiate drilling exploration wells to test seismically-defined anomalies.
"We intend to conduct a seismic program that has low impact on the environment and maximum impact on the local economy," stated Warren Workman, Vice President of Exploration of CGX and President of ON. "We're going to use very portable equipment to drill the shot holes. For the program, we'll employ about 150 people - 80 hired directly by our subcontractors and the rest through support services. Seis Pros will manage the seismic program and provide quality control for the entire project." The 800,000-acre Berbice block is held by ON Energy Inc., a Guyanese registered company, currently owned 85.5% by CGX. Additional financing will be required within ON Energy to complete the 2-D seismic program. CGX will support that financing as it evolves.
