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CGX Energy Files Second Quarter Financial Statements, Announces Impairment of the Corentyne Block, and Changes to the Board of Directors
Toronto, Ontario--(Newsfile Corp. - August 13, 2025) - CGX Energy Inc. (TSXV: OYL) (" C...
About this update from Cgx Energy Inc.
[{"type":"text","content":"CGX Energy Files Second Quarter Financial Statements, Announces Impairment of the Corentyne Block, and Changes to the Board of DirectorsToronto, Ontario--(Newsfile Corp. - August 13, 2025) - CGX Energy Inc. (TSXV: OYL) (\"CGX\" or the \"Company\") today announced the release of its unaudited consolidated financial statements and Management Discussion and Analysis for the second quarter of 2025 (together, the \"Financial Disclosures\"), which include the recognition of an impairment loss of $56.4 million on its exploration and evaluation assets related to the Company's Corentyne Block. The Company evaluated the Corentyne exploration & evaluation asset's recoverability given the Government of Guyana's (\"GoG\") conduct and communications, and its unwillingness to recognize the rights of Frontera Energy Guyana Corp. (\"Frontera Guyana\") and CGX Resources Inc. (\"CGX Resources\" and together with Frontera Guyana, the \"Joint Venture\") during the consultation periods, which have since expired.Although all contractual requirements of the Company have been met and an external legal assessment determined that the Company's interests in the licenses and agreements for the Corentyne block remain valid, the GoG's positions mentioned above have restricted the Company's ability to develop activities under those licenses and agreements. This situation has led to uncertainty regarding the asset's future development and constituted an impairment indicator. Consequently, the Company recognized an impairment of $56.4 million its income statement, and the Corentyne E&E asset's carrying value as of June 30, 2025 is $Nil (December 31, 2024 $56.2 million).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 remains committed to working with the GoG to resolve these issues amicably, while preparing to assert and protect our legal and contractual rights through all available legal remedies, as necessary.The Company also announced that, effective today, Dr. Suresh Narine has resigned from his positions as Executive Director, Guyana and Executive Co-Chairman of the Board of Directors of CGX (the \"Board\") and from his positions with the Company's subsidiaries to pursu...