CGX subsidiary to be wound up as unable to pay debts

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.