CGX Energy Inc. (TSXV: OYL) ("CGX") and Frontera Energy Corporation (TSX: FEC) ("Frontera") announced that the joint venture (the "Joint Venture"), which was established through their respective subsidiaries in the Petroleum Agreement and the Petroleum Prospecting License for the Corentyne block offshore Guyana (the "License"), recently received a communication from the Government of Guyana informing the Joint Venture that: on the one hand, "The Government is of the view that the Petroleum Agreement and Prospecting Licence are at an end," but on the other hand, that the Government of Guyana "hereby terminates the Petroleum Agreement and cancels the Prospecting Licence with immediate effect."
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 and its shareholders continue to invite the Government of Guyana to amicably resolve the issues affecting the Joint Venture's investments in the Corentyne block. Should the parties not reach a mutually agreeable solution, the Joint Venture and its shareholders are prepared to assert their legal rights.
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.
