Latest update April 19th, 2024 12:51 AM
Sep 20, 2011 News
Oil and gas company CGX Energy yesterday reported that it has struck a deal with a syndicate of underwriters to raise US$80 million.
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana/Suriname Basin, an area that is ranked second in the world for oil and gas prospectivity by the United States Geological Service.
The company said that it plans to issue 114.3 million shares for a price of 70 cents a share in a bought deal financing.
The company said it intends to use the proceeds to fund its capital program in offshore Guyana, and for general corporate purposes.
CGX also granted the underwriters an option to purchase up to an additional 17.14 million shares to cover over-allotments for 70 cents a share, for gross proceeds of $12 million.
The syndicate of underwriters is led by Cormark Securities, Canaccord Genuity, GMP Securities L.P. and Toll Cross Securities, among others.
The financing is expected to close October 12, and is subject to the Toronto Stock Exchange Venture approval and securities regulatory approval.
CGX Energy is focused on exploring oil in the Guyana-Suriname basin. The company’s licences in Guyana cover 9.5 million acres.
Earlier this month, CGX announced that trading in the Company’s shares was halted following the reaction to an announcement by Tullow Oil Inc of oil discoveries in their Zaedyus well offshore French Guiana. CGX does not have any interest in the Zaedyus well.
“CGX is a 25 per cent partner with Tullow, Repsol and YPF in the Georgetown Petroleum Prospecting Licence offshore Guyana in which the partners are preparing to drill a Turonian test in the Jaguar well later this year. Investors are cautioned that Jaguar is located over 500 km from Zaedyus and the risk remains high,” Kerry Sully, Chairman of CGX, stated.
CGX is managed by a team of oil and gas and finance professionals from Canada, U.S.A. and the UK. The company is financed internationally and has thousands of shareholders worldwide.
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