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CGX Energy and Frontera Energy Receive Approval of Strategic Joint Venture from the Government of The Cooperative Republic of Guyana
CGX Energy and Frontera Energy Receive Approval of Strategic Joint Venture from the Govern...
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[{"type":"text","content":"\n\n\n\nCGX Energy and Frontera Energy Receive Approval of Strategic Joint Venture from the Government of The Cooperative Republic of Guyana\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, May 3, 2019\n\n\n\nTORONTO, May 3, 2019 /CNW/ - CGX Energy Inc. (TSXV: OYL) (\"CGX\") and Frontera Energy Corporation (TSX: FEC) (\"Frontera\") announced today that the Government of The Cooperative Republic of Guyana has approved the farm-in joint venture agreement covering two shallow water offshore Petroleum Prospecting Licenses in Guyana, the Corentyne and Demerara blocks.\nUnder the terms of the farm-in joint venture agreement between Frontera and a wholly owned subsidiary of CGX, CGX Resources Inc., Frontera will acquire a 33.333% working interest in the two blocks in exchanged for a US$33.3 million signing bonus, paid by way of offset of $24.6 million of debt payable to Frontera by CGX plus a cash payment of US$8.7 million paid by Frontera to CGX. Frontera has agreed to pay one-third of the applicable costs under the joint ventures plus an additional 8.333% of CGX's direct drilling costs for the initial exploratory commitment wells in the two blocks. CGX is the operator assigned to the blocks.\nProfessor Suresh Narine, Executive Chairman and Executive Director (Guyana), CGX, said:\"CGX is one of the pioneer explorers in the Guyana basin, celebrating its 20th year in 2018; it is widely regarded as Guyana's indigenous oil company. I would like to thank the Government of The Cooperative Republic of Guyana for the approval of this pivotal joint venture by Frontera into the Corentyne and Demerara blocks. Coupled with the recently concluded successful rights offering financing, this partnership allows CGX to significantly clean up its balance sheet and resume with vigor its exploration of the continental shelf in the Guyana basin. As oil and gas begins to play a pivotal role in the transformation of The Cooperative Republic of Guyana, CGX is delighted to be positioned to claim its place in the development of Guyana and this exciting new industry. Frontera h...