CGX Energy Announces Filing of Second Quarter Financial Statements


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Toronto, Ontario–(Newsfile Corp. – August 9, 2022) – CGX Energy Inc. (TSXV: OYL) (“CGX“or the”Company“) today announced the release of its unaudited consolidated financial statements for the second quarter of 2022, together with its Management, Discussion and Analysis – Quarterly Highlights report (the “Financial Disclosures“). This financial information will be published on the Company’s website at www.cgxenergy.com and on SEDAR at www.sedar.com. All values ​​in the financial information are in United States dollars, except otherwise indicated.

Company Highlights:

Well Kawa-1

On May 9, 2022, Frontera Energy Corporation (“Border“) and CGX, joint venture partners (the “joint venture“) in the oil prospecting license for the Corentyne Block, offshore Guyana, announced the discovery of 228 feet (69 meters) of net production across the Maastrichtian, Campanian, Santonian and Coniacian horizons at the Kawa exploration well -1, off Guyana.Third Party analyzes indicated the presence of light petroleum in the Santonian and Coniacian, and gas condensate in the Maastrichtian and Campanian.The results are consistent with findings reported by d other operators adjacent to the Corentyne Block and further reduce the risk of equivalent oil targets planned at the Block Wei-1 exploration well.

Wei-1 Exploration Well

Final preparations are underway before the start of the joint venture’s second exploration well, Wei-1, in October 2022, subject to release of the platform by a third-party operator. The Wei-1 exploration well will be located approximately 14 kilometers northwest of the Kawa-1 exploration well in the Corentyne Block, approximately 200 kilometers offshore of Georgetown, Guyana. The Wei-1 exploration well will be drilled at a water depth of approximately 1,912 feet (583 meters) to a planned total depth of 20,500 (6,248 meters) and will target stacked channels of Campanian age and Santonian in a western channel complex in the northern part of the Corentyne block.

Demerara

During the quarter, CGX and Frontera announced that they had reached an agreement in principle with the government of Guyana to allow the abandonment of the Demerara block through a mutual termination agreement, the terms of which are yet to be defined. and to document. This Termination Agreement will allow for the timely abandonment of the Demerara Block, allowing the people of Guyana to benefit from exploration activities under the direction of interested parties.

Berbice

During the quarter, CGX also announced that it had reached an agreement in principle with the Guyanese government to allow the abandonment of the Berbice block through a mutual termination agreement, the terms of which have yet to be defined and documented. This Termination Agreement will allow for the abandonment of the Berbice Block in a timely manner, allowing the people of Guyana to benefit from exploration activities under the direction of interested parties.

Berbice Deep Water Port

CGX continues to advance the deep water port of Berbice (“BDWPThe BDWP facility intends to serve as an offshore supply base for the oil and gas industry and a multi-purpose terminal cargo handling base to service agricultural import/export, containerized and specialty cargo. The BDWP aims to enable the supply of operators and vendors in the territorial waters of Guyana and Suriname An access bridge from the Corentyne highway, the rehabilitation of the access road, the construction of the deposit yard, the construction of the Sea Defense Rip Rap, the extension of the electrical infrastructure to the port site and the delivery of drinking water Requests for proposals have been received for the quay platform and the access trestle, the program of capital dredging, design and construction of all gates, buildings, design and construction of fire and first aid structures and covered storage areas. es for capital dredging and construction of wharf platform and access trestle have been completed and a local contractor selected. The successful bid includes an updated dock and trestle design to achieve cost savings. Due to certain delays, the Company estimates that it is unlikely that the port’s offshore supply base will be fully operational in the fourth quarter of 2022, as previously expected. A revised schedule for the completion of the port’s offshore supply base is being discussed with the contractor and the Company expects to provide an updated schedule to shareholders and stakeholders in due course.

Lease transaction

On July 22, 2022, CGX and Frontera announced that the companies had entered into an agreement to amend the joint operating agreement originally signed between CGX and a subsidiary of Frontera on January 30, 2019, as amended (the “JOA Amendment“), effectively cultivating the Corentyne Block and securing funding for the Wei-1 exploration well. Following the JOA Amendment, CGX will hold a 32.00% interest and Frontera will hold a 68.00% interest in the Corentyne block The JOA Amendment remains subject to certain conditions precedent, including the approval of the TSX Venture Exchange and certain confirmations from the government of Guyana with respect to the oil agreement for the Corentyne block.

About CGX

CGX is a Canada-based oil and gas exploration company focused on oil exploration in the Guyana-Suriname Basin and the development of a deepwater port in Berbice, Guyana.

NEITHER THE TORONTO STOCK EXCHANGE, THE TSX VENTURE EXCHANGE NOR THEIR REGULATORY SERVICE PROVIDERS (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TORONTO STOCK EXCHANGE AND THE TSX VENTURE EXCHANGE) ACCEPT RESPONSIBILITY FOR THE SUITABILITY OR ACCURACY OF THIS RELEASE.

Cautionary and forward-looking statements:

This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that CGX believes or anticipate will or may occur in the future (including (but not limited to, statements regarding exploration and development plans and objectives regarding the Kawa-1 or Wei-1 well or the BDWP) are forward-looking statements. These forward-looking statements reflect CGX’s current expectations or beliefs based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are achieved or substantially achieved, there can be no assurance that they will have the expected consequences or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among others: the need to obtain required regulatory approvals; the ability of the Frontera and CGX joint venture to successfully explore and develop offshore blocks, and to finance exploration and development and the impact thereof on unanticipated costs and expenses; changes in equity and debt markets; perceptions of the outlook and outlook for the oil and gas industry in countries where the Company operates or has investments; and other risks disclosed under “Risk Factors” and elsewhere in the Company’s Annual Information Form dated May 5, 2021 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as required by applicable securities laws, CGX disclaims any intention or obligation to update any forward-looking statement, whether as a result of future or other new information, events or results. Although CGX believes that the assumptions inherent in the cautionary and forward-looking statements applicable to it are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on such statements. because of the inherent uncertainty.

For further information: Please contact Todd Durkee, Vice President, Development, CGX, (832) 300-3200, www.cgxenergy.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/133347

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