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CGX Energy and Frontera Energy Announce Transaction for the Corentyne Block That Secures Funding for the Wei-1 Exploration Well
Participating Interest in Corentyne Block Now 32% CGX and 68% Frontera The Joint Venture A...
About this update from Cgx Energy Inc.
[{"type":"text","content":"CGX Energy and Frontera Energy Announce Transaction for the Corentyne Block That Secures Funding for the Wei-1 Exploration WellParticipating Interest in Corentyne Block Now 32% CGX and 68% FronteraThe Joint Venture Anticipates Spudding the Wei-1 Exploration Well in October 2022CGX and Frontera Agree to Convert May 2021 and March 2022 Loans into Participating Interest in CorentyneToronto, Ontario--(Newsfile Corp. - July 22, 2022) - CGX Energy Inc. (TSXV: OYL) (\"CGX\") and Frontera Energy Corporation (TSX: FEC) (\"Frontera\"), joint venture partners (the \"Joint Venture\") in the Petroleum Prospecting License for the Corentyne block offshore Guyana, announces today that the companies have entered into an agreement to amend the Joint Operating Agreement originally signed between CGX and a subsidiary of Frontera on January 30, 2019, as amended (the \"Agreement\"), effectively farming into the Corentyne block and securing funding for the Wei-1 exploration well. The Agreement remains subject to certain conditions precedent, including approval of the TSX Venture Exchange (which is subject to the receipt by CGX of a formal valuation), TSX acceptance of the Agreement, and certain confirmations from the Government of Guyana relating to the petroleum agreement for the Corentyne block. \"CGX is pleased to complete this farm-in agreement with Frontera, which enables CGX to strengthen its balance sheet and secure funding for the Wei-1 exploration well. Our continued partnership with Frontera reflects the significant value we have created on the Corentyne license and the opportunity set that is now before us following the discovery of hydrocarbons at the Kawa-1 exploration well. We are focused now on the transformational potential of the Corentyne block ahead of spudding the Wei-1 exploration well in October 2022, pending rig release from the current operator,\" said Professor Suresh Narine, Executive Co-Chairman of CGX.\"Frontera is excited to complete this agreement with CGX and continue our work together on the Corentyne Block,\" said Orlando Cabrales, Chief Executive Officer of Frontera. \"Building on the Joint Venture's recent light oil and condensate discovery at the Kawa-1 exploration well, the Agreement supports CGX's capital needs for the Wei-1 exploration well and provides Frontera with an increased participating interest in the Cor...