CGX Energy - Executive Chairman, Suresh Narine
Executive Chairman, Suresh Narine
Source: CGX Energy
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  • CGX Energy (OYL) has received conditional TSXV approval to amend the joint operating agreement on the Corentyne block
  • The agreement was originally signed between CGX and a subsidiary of Frontera Energy Corporation
  • Also the US$19 million convertible loan outstanding to Frontera has been extended to September 30, 2022 to allow for the completion of the agreement
  • The joint venture has also entered into a definitive agreement with Maersk Drilling Holdings Singapore Pte for the use of the Maersk Discoverer to drill the Wei-1 exploration well
  • CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin
  • CGX Energy Inc. opened the day’s trading at $0.94 per share

CGX Energy (OYL) has received conditional approval from the TSXV to amend the joint operating agreement on the Corentyne block.

The agreement was initially signed between CGX and a subsidiary of Frontera Energy Corporation, joint venture partners in the petroleum prospecting licence for the Corentyne block offshore Guyana, on January 30, 2019, as amended.

This effectively farmed into the Corentyne block and secured funding for the Wei-1 exploration well as previously announced on July 22, 2022.

The agreement remains subject to certain confirmations from the Government of Guyana relating to the petroleum agreement for the Corentyne Block and final approval from the TSXV.

Furthermore, CGX has announced that the US$19 million convertible loan outstanding to Frontera, which was previously announced on April 16, 2021, and May 28, 2021, and initially maturing on June 30, 2022, has been extended to July 31, 2022, and then subsequently to September 30, 2022, to allow for the completion of the agreement.

In addition, the company also announced that the Joint Venture, through CGX Resources Inc., operator of the Corentyne Block, has entered into a definitive agreement with Maersk Drilling Holdings Singapore Pte for the use of the Maersk Discoverer to drill the Wei-1 exploration well.

As earlier announced on August 23, 2021, the company had elected to exercise its option for a second well from the definitive agreement on the Kawa-1 well announced on April 22, 2021.

Lastly, the company has noted that the joint venture has received the required environmental permits for spudding and drilling of the Wei-1 exploration well from the Guyana Environmental Protection Agency.

CGX Energy 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.

CGX Energy Inc. opened the day’s trading at $0.94 per share.


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