Regulator goes after oil company unknown shareholders

Feb 08, 2018 News

With Guyana moving to commercially produce oil in another two years time, there has been increasing interest in this country.
At least 3.2B barrels of oil are sitting in the Stabroek Block, about 100 miles offshore Guyana. That discovery was made in early 2015 by US-owned ExxonMobil and its partners.
One of the first companies in recent times to bring the offshore exploration into play was CGX Energy Inc. Its first drill in 2012 came up dry.
Since then, with oil confirmed on nearby concessions, the Canadian-owned company has been attempting to attract investors.
One of its subsidiaries, “ON Energy Inc.”, is now under the spotlight.
The regulator, Guyana Securities Council, is looking for one New York-based shareholder, GGC Resources Inc.
According to a Public Notice in Kaieteur News yesterday, the Guyana Securities Council, explained that it is the regulatory body established under Guyana’s Securities Industry Act 1998, and is charged with the oversight and development of Guyana’s Securities Market.
“As part of our due diligence, the Guyana Securities Council is hereby seeking any information the public may have on the company, ‘GGC Resources Inc.’, operating from the address, 505 Park Avenue -9^th Floor, New York, N.Y., 10022, United States of America.”
The council explained that the company is a 30.11% shareholder of ON Energy Inc., a registered reporting issuer (public company) of the Guyana Securities Council.
ON Energy is said to be a subsidiary of CGX Energy.
“The Council is inviting anyone who may have information on this company with regards to its incorporation, principals, directorship, nature of business, its shareholders or any other relevant information, to contact the council via telephone numbers 592-227-4235; 592-223-5189, fax 592-227-4236, email [email protected], or by letter addressed to the Guyana Securities Council, c/o Bank of Guyana, 1 Avenue of the Republic, Georgetown, Guyana.”
The council assured that all information sent will be treated with strict confidentiality.
Kaieteur News was said that CGX is said to be the parent company of On Energy.
Kaieteur News was told that with significant trading and transactions involving millions of dollars, the regulators must be aware of who the persons are that make decisions for companies that trade.
“They must have a face,” a banking official explained.
Even five percent that is owned is substantial. “….and the regulator…in this case, the Guyana Securities Council- has to be notified who the substantial shareholder is.”
While principals of the Guyana Securities Council were not available for comment yesterday, a source indicated that the council had been engaging representatives of CGX and others but those engagements have been fruitless. This spurred the placement of the notice yesterday.