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CGX Energy Announces Filing of Second Quarter 2023 Financial Statements
Secures Funding for Company's Share of Additional Wei-1 Well Costs Toronto, Ontario--(Newsfile C...
About this update from Cgx Energy Inc.
[{"type":"text","content":"CGX Energy Announces Filing of Second Quarter 2023 Financial StatementsSecures Funding for Company's Share of Additional Wei-1 Well CostsToronto, Ontario--(Newsfile Corp. - August 10, 2023) - CGX Energy Inc. (TSXV: OYL)(\"CGX\" or the \"Company\") today released its unaudited Consolidated Financial Statements for the second quarter of 2023, together with its Management, Discussion and Analysis - Quarterly Highlights (the \"Financial Disclosures\"). These Financial Disclosures will be posted on the Company's website at www.cgxenergy.com and on SEDAR at www.sedarplus.ca. All values in the Financial Disclosures are in United States dollars unless otherwise stated.In addition, CGX and Frontera Energy Corporation (\"Frontera\"), joint venture partners (the \"Joint Venture\") in the Petroleum Prospecting License for the Corentyne block offshore Guyana, announce that following the safe and successful completion of Wei-1 well drilling operations (see press releases dated June 28, 2023 and June 13, 2023), the Joint Venture has entered into an agreement to amend the Joint Operating Agreement originally signed between CGX and a subsidiary of Frontera on January 30, 2019 and subsequently amended on July 21, 2022 (the \"Agreement\"), whereby Frontera will effectively be farming into the Corentyne block to cover the unexpected additional costs of the Wei-1 well due to delays associated with the late release of the rig by a third-party, costs associated with a lost sampling tool, and the drilling of the bypass well. The Agreement remains subject to regulatory approvals, including approval of the TSX Venture Exchange. As part of the Agreement, CGX will transfer up to 4.7% of its participating interest in the Corentyne block to Frontera in exchange for Frontera funding CGX's additional expected outstanding share of the Joint Venture's costs associated with the Wei-1 well for up to approximately $16.5 million. As a result of this agreement, if the maximum amount is transferred by CGX, the Company will have a 27.3% participating interest and Frontera will have a 72.7% participating interest in the Corentyne block.The transactions described herein between Frontera and CGX are related party transactions under Multilateral Instrument 61-101 (\"MI 61-101\") but are exempt from the obligations to obtain a formal valuation and approval from a minority o...