CGX Energy Announces Settlement Agreement with Repsol
CGX Energy Inc. (“CGX Energy”) announced the settlement of the claims brought against Repsol Exploración, S.A. (“Repsol”) relating to the joint operating agreement governing the Georgetown Block (the “Georgetown JOA”), offshore Guyana (the “Settlement”).
CGX Resources Inc. (“CGX Resources”), a wholly-owned subsidiary of CGX Energy, commenced an arbitration against Repsol in the London International Court of Arbitration and received an injunction against Repsol in from the High Court of the Supreme Court of Judicature in January and August, 2014.
Under the terms of the Settlement, CGX Energy received approximately U.S.$900,000 due to CGX Resources pursuant to the terms of the Georgetown JOA and neither party was responsible for costs or damages.
Repsol has also agreed to evaluate opportunities in the Guyana-Suriname basin and Repsol was granted a ninety (90) day option to present a farm-in proposal to acquire at least a 10% participating interest in any of the Corentyne Block (100%), Demerara Block (100%) or the Berbice Block (62%).
In addition, CGX Energy and Pacific Rubiales Energy Corp. have been granted a similar option on the Kanuku Block. In the event that a proposal is accepted, any definitive agreements are subject to due diligence and the terms of any pre-existing petroleum agreement or joint operating agreement.
The parties look forward to the prospect of working together again in the future if and when the right opportunities arise.
Source: CGX Energy