Due to its inability to pay its debts ON Energy has announced that it will be winding up the company and will be holding a general and creditor’s meetings in February.
ON Energy is a subsidiary of Canadian oil explorer CGX Energy Inc which was granted a licence by the Guyanese government to conduct exploration activities in the Berbice Block.
Between 2005 and 2006, ON Energy drilled a total of five oil wells but all were non-commercial. Nevertheless, the government renewed their license but last year CGX indicated they could not drill the exploration well as was agreed upon due to the unavailability of funds. In November last year, CGX announced that On Energy had signed a deed of surrender for the Berbice block.
However, even as ON Energy is winding up, CGX Energy has announced that it and joint venture partner Frontera Energy have spudded the Wei-1 well, on the Corentyne Block, approximately 200 kilometres offshore from Georgetown, Guyana.
Nothing regarding ON Energy was released. However, in the Tuesday edition of Stabroek News, ON Energy in two separate notices announced that the company will be winding up and that it will be holding a general and creditor’s meetings on February 24th, 2023 at 4:30 and 4:45 pm, respectively, at its 234 Lance Gibbs and Irving Streets location.
According to the notice, the purpose of the general meeting is to consider and if thought fit, pass the resolution to wind up the company as well as nominate Harry Noel Narine of the firm of PKF, Barcellos, Narine & Co, chartered Accountants, liquidator. It was stated that the decision to wind up the company is due to ON Energy being unable to pay its debts and as such it was advised to take appropriate action voluntarily.
The purpose of the creditors’ meeting is for directors to present a statement of affairs, the list of creditors and the estimated amount of their claims, nominate a liquidator, and fix the liquidator’s remuneration. There were a number of local investors in ON Energy.
Meanwhile, CGX announced that the Government of Guyana has approved an Appraisal Plan for the northern section of the Corentyne block which commenced with the Wei-1 well.
Contingent
It was stated however that following completion of the Wei-1 drilling operations and upon detailed analysis of the results, the Joint Venture may consider future wells per its appraisal programme to evaluate possible development feasibility in the Kawa-1 discovery area and throughout the northern section of the Corentyne block and that future drilling is contingent on positive results at Wei-1 and the Joint Venture has no further drilling obligations beyond the Wei-1 well.
The Wei-1 well is located approximately 14 kilometres northwest of the Joint Venture’s previous Kawa-1 light oil and condensate discovery and will be drilled in water depth of approximately 1,912 feet (583 metres) to an anticipated total depth of 20,500 feet (6,248 metres). The Wei-1 well will target Maastrichtian, Campanian and Santonian aged stacked sands within channel and fan complexes in the northern section of the Corentyne block. According to CGX, the well is expected to take approximately 4-5 months to reach total depth.
Suresh Narine, Executive Co-Chairman of CGX Energy’s Board of Directors, commented:
“The Joint Venture is pleased to announce that it has spud the Wei-1 well, offshore Guyana and that the Government of Guyana has approved the Joint Venture’s appraisal program. Wei-1 will appraise both the Kawa-1 discovery as well as explore additional opportunities within the Corentyne block. The Wei-1 well is on-trend, and well positioned for success with both Kawa-1 and recent peer discoveries immediately adjacent to the northern section of the Corentyne block. The Joint Venture is grateful for the Government of Guyana’s ongoing support as we worked towards spudding Wei-1 in accordance with the previously agreed terms, and we look forward to potentially delivering another discovery for our shareholders and the Guyanese people.”
As it relates to the Berbice Deep Water Port (BDWP), CGX said the project is advancing, and to date has spent over $22 million on the BDWP project, through its wholly owned subsidiary Grand Canal Industrial Estates. The port facility intends to serve as an offshore supply base for the oil and gas industry and as a multi-purpose terminal to service agricultural import/export, containerized and specialized cargo including aggregates for construction purposes.
According to CGX, the production of concrete piles and other concrete pre-stressed structures for the in-river construction of a 50 x 12 m access trestle being built from the quayside yard westward into the Berbice river, has begun and is almost completed. This will be immediately followed by in river construction activities, including necessary dredging of the river, in the first quarter of 2023.
