CGXcannotaffordtofullyinsure...

country would be wise to developagasmasterplan.

The Vice President indicated that the government is of the firm conviction that the gas resource canbeaslucrative as the oil component of Exxon’soperations.

He stressed however that a lot hinges on the availability of the gas and not being carried away by thesizeofthereserve.

This is so as a portion of thegasmustbere-injectedto ensurethereservoirpressure isstable.

Frompage19 saidtoothattherecanbeno assurance that CGX will be able to obtain the insurance coverage that it believes is appropriate.

In addition, the company’s report said, “the risks to which CGX’s operations are subject may not in all circumstances be insurable or, in certain circumstances, CGX may elect not to obtain insurance to deal with specific risks due to the highpremiumsassociated withsuchinsuranceorother reasons.”

CGX said the payment ofsuchuninsuredliabilities would reduce the funds available to it for other purposes.

The Canadian explorer also noted that it obtains insurance for its operations that it believes are appropriate for each specificactivity

It said, however, there can be no assurance that proceeds from such insurance will be sufficient to cover CGX’s relatedlosses

It said the occurrence of a significant event that CGX is not fully insured against, or the non- payment by the insurer in connection with such event, could have a material adverse effect on CGX’s financial position and/or its results of operations.

K a i e t e u r N e w s Publisher, Glenn Lall believes the foregoing information released by CGX proves once again why Guyana needs full coverageinsuranceforthe Stabroek Block where there is an aggressive e x p l o r a t i o n a n d production programme ongoingbyanExxonMobilledconsortium.