(OYL.V) Jan. 11, 2019 – CGX Energy Inc. and Frontera Energy Corporation (TSX: FEC) have further amended a letter agreement previously disclosed in a news release of CGX and Frontera on Dec. 4, 2018 and amended on Dec. 14, 2018, to extend the time of the launch of the equity financing in the amount of approximately USD$20 million to occur on or prior to Feb. 6 and anticipated to be completed on or prior to Mar.15, subject to regulatory approval.
CGX and Frontera have also amended the letter agreement to extend the time by which CGX Resources Inc., a wholly owned subsidiary of CGX, and Frontera will enter into a farm-in joint venture agreement covering CGX’s two shallow-water offshore petroleum prospecting licences in Guyana, the Corentyne and Demerara blocks, as previously disclosed on Dec. 4, 2018, to on or prior to Feb. 6.
These changes to the timing are not expected to have any impact on the timing of the drilling of the Utakwaaka-1 exploration well on the Corentyne block, which is required to be drilled by Nov. 27. As previously announced by CGX Energy, a definitive rig agreement has been executed with Rowan Rigs S.A R.L for the use of the Ralph Coffman offshore jack-up rig which is targeted to commence during the second quarter of 2019.
The proposed transactions between Frontera and CGX contemplated by the letter agreement are related-party transactions under Multilateral Instrument 61-101.
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.