CGX Energy and Frontera Energy Face Uncertainty in Corentyne Block License

CGX Energy Inc. (TSXV: OYL) and Frontera Energy Corporation (TSX: FEC), joint venture partners in the Petroleum Prospecting License for the Corentyne block offshore Guyana, recently received a communication from the Government of Guyana (the "Government") regarding the status of their license. The Government has taken the position that the License, together with the Joint Venture's Petroleum Agreement with the Government (as amended, the "Petroleum Agreement"), have terminated. This stance has created uncertainty for the joint venture's exploration and development plans in the Corentyne block.

The Government's communication states that there are no reasonable grounds to grant any extensions to the Joint Venture in respect of its appraisal or exploration obligations under the License or the Petroleum Agreement. Furthermore, the Government has served a 30-day notice of its intention to cancel any existing license if it is determined that the License has continued or that the Joint Venture holds any other type of licence contemplated by applicable legislation. The Government has invited the Joint Venture to submit any representations it wishes to consider prior to making a final decision on whether to cancel any license that may exist. The Letter also extends the time for good faith negotiations to allow receipt and consideration of any representation the Joint Venture makes.

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 the Petroleum Agreement has not been terminated. Notwithstanding the Government's position, the Joint Venture is assessing all legal options available to it to assert its rights and will respond to the Government. The Joint Venture looks forward to expeditiously resolving this matter and continuing its multi-year efforts and investments to realize value for the people of Guyana and its shareholders from the Corentyne block.

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. Frontera Energy Corporation is a Canadian public company involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 22 exploration and production blocks in Colombia, Ecuador, and Guyana, and pipeline and port facilities in Colombia. Frontera is committed to conducting business safely and in a socially, environmentally, and ethically responsible manner.

The outcome of the negotiations with the Government of Guyana will significantly impact the joint venture's long-term strategy and investments in the Corentyne block. If the Government cancels the license, the joint venture may lose its rights to explore and develop the block, which could result in a substantial setback for their long-term plans. This could lead to a loss of potential revenue and value for both CGX and Frontera, as well as the people of Guyana. On the other hand, if the joint venture successfully defends its interests and maintains its license, it could continue its exploration and development efforts, potentially leading to significant discoveries and economic benefits for all parties involved. The joint venture's ability to assert its rights and reach a favorable agreement with the Government will be crucial in determining the future of its investments in the Corentyne block.



In conclusion, the uncertainty surrounding the Corentyne block license has significant implications for CGX Energy's and Frontera Energy's exploration and development plans, as well as their long-term strategy and investments in the block. The joint venture's ability to assert its rights and reach a favorable agreement with the Government will be crucial in determining the future of their investments in the Corentyne block. Investors should closely monitor the situation and consider the potential impact on the companies' stock prices and overall value.