Frontera Energy and CGX Energy Provide Update on Corentyne Block License
CGX Energy (TSXV: OYL) and Frontera Energy (TSX: FEC) announced a significant development regarding their joint venture in the Corentyne block offshore Guyana. The Government of Guyana has communicated its intention to terminate the Petroleum Agreement and cancel the Prospecting License with immediate effect.
The Joint Venture strongly maintains that its interests and License for the Corentyne block remain valid and in good standing, disputing the government's position on the agreement's termination. The partners are seeking an amicable resolution with the Guyanese government but have indicated their readiness to pursue legal action if necessary to protect their investments.
CGX Energy (TSXV: OYL) e Frontera Energy (TSX: FEC) hanno annunciato un importante sviluppo riguardante la loro joint venture nel blocco Corentyne al largo della Guyana. Il Governo della Guyana ha comunicato la sua intenzione di terminare l'Accordo Petrolifero e annullare la Licenza di Prospezione con effetto immediato.
La Joint Venture sostiene fermamente che i suoi interessi e la Licenza per il blocco Corentyne rimangono validi e in buono stato, contestando la posizione del governo riguardo alla cessazione dell'accordo. I partner stanno cercando una risoluzione amichevole con il governo guyanese, ma hanno indicato la loro disponibilità a intraprendere azioni legali se necessario per proteggere i loro investimenti.
CGX Energy (TSXV: OYL) y Frontera Energy (TSX: FEC) anunciaron un desarrollo significativo con respecto a su empresa conjunta en el bloque Corentyne frente a las costas de Guyana. El Gobierno de Guyana ha comunicado su intención de terminar el Acuerdo Petrolero y cancelar la Licencia de Prospección con efecto inmediato.
La empresa conjunta sostiene firmemente que sus intereses y la Licencia para el bloque Corentyne siguen siendo válidos y están en buen estado, disputando la posición del gobierno sobre la terminación del acuerdo. Los socios están buscando una resolución amistosa con el gobierno guyanés, pero han indicado su disposición a emprender acciones legales si es necesario para proteger sus inversiones.
CGX Energy (TSXV: OYL)와 Frontera Energy (TSX: FEC)는 가이아나 해안의 코렌타인 블록에서의 합작 투자에 관한 중요한 발전을 발표했습니다. 가이아나 정부는 석유 계약을 종료하고 탐사 라이센스를 즉시 취소할 의사를 밝혔습니다.
합작 투자는 코렌타인 블록에 대한 그들의 이익과 라이센스가 유효하고 좋은 상태에 있다고 강력히 주장하며, 정부의 계약 종료 입장을 반박하고 있습니다. 파트너들은 가이아나 정부와의 우호적인 해결을 모색하고 있지만, 필요할 경우 투자를 보호하기 위해 법적 조치를 취할 준비가 되어 있다고 밝혔습니다.
CGX Energy (TSXV: OYL) et Frontera Energy (TSX: FEC) ont annoncé un développement significatif concernant leur coentreprise dans le bloc Corentyne au large de la Guyane. Le gouvernement de la Guyane a communiqué son intention de résilier l'Accord Pétrolier et d'annuler la Licence de Prospection avec effet immédiat.
La coentreprise soutient fermement que ses intérêts et la Licence pour le bloc Corentyne demeurent valides et en règle, contestant la position du gouvernement concernant la résiliation de l'accord. Les partenaires cherchent une résolution amiable avec le gouvernement guyanais, mais ont indiqué leur disposition à engager des actions judiciaires si nécessaire pour protéger leurs investissements.
CGX Energy (TSXV: OYL) und Frontera Energy (TSX: FEC) haben eine bedeutende Entwicklung bezüglich ihres Joint Ventures im Corentyne-Block vor der Küste von Guyana bekannt gegeben. Die Regierung von Guyana hat ihre Absicht mitgeteilt, den Erdölvertrag zu kündigen und die Erkundungslizenz mit sofortiger Wirkung zu annullieren.
Das Joint Venture betont nachdrücklich, dass seine Interessen und die Lizenz für den Corentyne-Block weiterhin gültig und in gutem Zustand sind und bestreitet die Position der Regierung zur Kündigung des Vertrags. Die Partner streben eine einvernehmliche Lösung mit der guyanesischen Regierung an, haben jedoch ihre Bereitschaft signalisiert, rechtliche Schritte einzuleiten, wenn dies notwendig ist, um ihre Investitionen zu schützen.
- Company maintaining strong legal position regarding license validity
- Management actively pursuing both diplomatic and legal options to protect assets
- Government of Guyana's attempt to terminate the Petroleum Agreement and License poses significant risk to operations
- Potential legal dispute could lead to costly litigation and project delays
- Uncertainty over Corentyne block ownership and rights threatens shareholder value
Toronto, Ontario--(Newsfile Corp. - March 13, 2025) - CGX Energy Inc. (TSXV: OYL) ("CGX") and Frontera Energy Corporation (TSX: FEC) ("Frontera") announced today that the joint venture (the "Joint Venture"), which was established through their respective subsidiaries in the Petroleum Agreement and the Petroleum Prospecting License for the Corentyne block offshore Guyana (the "License"), recently received a communication from the Government of Guyana informing the Joint Venture that: "The Government is of the view that the Petroleum Agreement and Prospecting Licence are at an end" and that the Government of Guyana "hereby terminates the Petroleum Agreement and cancels the Prospecting Licence with immediate effect."
The Joint Venture remains firmly of the view that its interests in, and the License for, the Corentyne block remain in place and in good standing and that the Petroleum Agreement has not been terminated. The Joint Venture and its shareholders continue to invite the Government of Guyana to amicably resolve the issues affecting the Joint Venture's investments in the Corentyne block. Should the parties not reach a mutually agreeable solution, the Joint Venture and its shareholders are prepared to assert their legal rights.
The Joint Venture looks forward to expeditiously resolving this matter and continuing its multi-year efforts and investments to realize value for the people of Guyana and its shareholders from the Corentyne block.
About CGX
CGX is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana.
About Frontera
Frontera Energy Corporation is a Canadian public company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 22 exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in Colombia. Frontera is committed to conducting business safely and in a socially, environmentally and ethically responsible manner.
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Advisories
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary Note Concerning Forward-Looking Statements:
This press release contains forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to activities, events or developments that CGX and Frontera believe, expect or anticipate will or may occur in the future. Forward-looking information in this press release includes, without limitation, statements relating to the Joint Venture and its shareholders asserting their legal rights and the Joint Venture's continuing efforts and investments in the Corentyne block. All information other than historical fact is forward-looking information. Forward-looking information reflects the current expectations, assumptions and beliefs of CGX and Frontera based on information currently available to them and considers the experience of the Joint Venture and its perception of historical trends. Although CGX and Frontera believe that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be placed on such information. Forward-looking information is subject to a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to CGX and Frontera, including the ability of the Joint Venture to reach an agreement with the Government of Guyana or successfully assert its legal rights. No assurance can be given that either an agreement will be reached or the successful asserting of its rights can be achieved. The actual results of the Joint Venture may differ materially from those expressed or implied by the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, either CGX or Frontera. The annual information form of Frontera for the year ended December 31, 2024, and CGX's and Frontera's management's discussion and analysis for the year ended December 31, 2024, and other documents each of CGX and Frontera files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge by referring to each company's profile on SEDAR+ at www.sedarplus.ca. All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, each of CGX and Frontera disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
For further information: Todd Durkee, Vice President, Development, CGX Energy Inc., (832) 300-3200, 2400, 333 Bay Street, Toronto, Ontario M5H 2T6, www.cgxenergy.com; Frontera Investor Relations, (403) 705-8827, 2000, 222 - 3rd Avenue SW, Calgary, Alberta T2P 0B4, ir@fronteraenergy.ca, www.fronteraenergy.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/244442
FAQ
What is the current status of CGX Energy's Corentyne block license in Guyana?
How are CGX Energy (CGXEF) and Frontera Energy responding to Guyana's license termination?
What is at stake for CGXEF shareholders in the Corentyne block dispute?
What options does CGX Energy have regarding the Corentyne block license dispute?
