CGX Energy Inc. (TSX VENTURE:OYL) ("CGX"
or the "Company) is pleased to announce that it has closed its
previously announced offering of common shares at $0.70 per share (the
"Offering"). Pursuant to the Offering, CGX has issued 131,445,000
common shares (the "Common Shares") of the Company for gross
proceeds of $92,011,500 which included the full exercise of the
over-allotment option. The Offering was led by Cormark
Securities Inc. and included GMP Securities L.P., Canaccord
Genuity Corp., Macquarie Capital Markets Canada
Ltd., Jennings Capital Inc. and Toll Cross Securities Inc. (collectively, the
"Underwriters"). As compensation for their services in connection
with the Offering, an aggregate underwriting fee of $5,520,690 was paid to
the Underwriters by the Company. Completion of the Offering is subject to
receipt by the Corporation of the final approval of the TSX Venture Exchange
in connection therewith.
Stephen Hermeston, President and CEO stated,
"This financing provides CGX with the necessary funding for its share of
the expected costs for two wells offshore Guyana - the Jaguar-1 well on our
25% owned Georgetown Petroleum Prospecting License ("PPL") and the
Eagle-1 well on our 100% owned Corentyne PPL. It
will also allow us to prepare for a second well on the Corentyne
PPL and to further develop our exploration portfolio with ongoing studies. We
will continue to pursue joint venture partners, but are no longer dependent
on them to complete the next two wells."
CGX 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. CGX is managed by a team of
experienced oil and gas and finance professionals from Canada, the US and the
UK. Additional information on CGX may also be examined and/or obtained
through the internet by accessing the website of CGX at www.cgxenergy.com.
The securities offered have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or applicable exemption from the
registration requirements. This news release does not constitute an offer to
sell or the solicitation of any offer to buy nor will there be any sale of
these securities in any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such province, state or jurisdiction.
Forward Looking Statements
This press release contains forward-looking statements. More particularly,
this press release contains statements which include, but are not limited to
the anticipated use of proceeds, the receipt of the required regulatory and
third party approvals.
The forward-looking statements are based on certain key expectations and assumptions
made by CGX. Although CGX believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because CGX can give
no assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of factors and
risks. The intended use of the net proceeds of the Offering by CGX might
change if the board of directors of CGX determines that it would be in the
best interests of CGX to deploy the proceeds for some other purpose.
The forward-looking statements contained in this press release are made as of
the date hereof and CGX undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.
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