VANCOUVER, BC (September 12, 2011) Dominion Lending Centres Clearlease Reports CGX Energy Inc. (TSXV:OYL) said Sept 12 it isn’t a partner in an oil discovery made off the coast of French Guiana by Tullow Oil PLC — although they share ownership in another offshore project 500 kilometres to the west.
The announcement by CGX did little to quell investor interest in the Toronto-based oil and gas company, which had a market capitalization of about $156 million prior to Friday’s stock activity.
CGX shares closed up 31.5 cents, or almost 65 per cent at 80 cents in heavy trading on the TSX Venture Exchange, with more than 10 million shares changing hands.
That was only a few cents off its high, even after CGX issued a statement saying it didn’t have any interest in the Zaedyus well, where Tullow discovered oil that could lead to new exploration in the region.
CGX is a 25 per cent partner with Tullow and two other companies in the Georgetown Petroleum Prospecting Licence offshore Guyana — another South American coastal country to the west of French Guiana.
Kerry Sully, chairman of CGX, noted that the four-company partnership is preparing to drill a test well in the Jaguar well later this year but added that the well is more than 500 kilometres from Zaedyus “and the risk remains high.”
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