Frontera Provides Update on Exploration Block Offshore Guyana

(Frontera, 16.Jun.2022) — Frontera Energy Corporation (TSX: FEC), joint venture partner with CGX Energy Inc. (TSXV: OYL) in the Petroleum Prospecting License for the Corentyne block offshore Guyana, today announced that, following constructive discussions with the government of Guyana, the joint venture will focus exclusively on the exploration opportunities in the Corentyne block. The decision follows the discovery at the Kawa-1 exploration well on the Corentyne block.

Frontera will continue to integrate its findings from the Kawa-1 well into preparations for its second exploration well, called Wei-1, in the third quarter of 2022. The Wei-1 exploration well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana. The Wei-1 exploration well will be drilled in water depth of approximately 1,912 feet (583 metres) to a targeted total depth of 20,500 (6,248 metres) and will target Maastrichtian, Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne block.

Given the importance of the Demerara block to Guyana, Frontera has, in principle, reached an agreement with the government to allow for the relinquishment of the Demerara block through a mutual termination agreement which terms remain to be defined and documented. Such termination agreement would allow relinquishment of the Demerara block in a timely manner, allowing the people of Guyana to benefit from exploration activities under the stewardship of interested parties.

Orlando Cabrales, Chief Executive Officer of Frontera, commented:

“The results from the Kawa-1 well have been a significant factor in developing a defined opportunity set for the joint venture partners. It was important to us, as partners to the government of Guyana, to positively resolve our desire to focus on Corentyne and not allow the Demerara block to be delayed in terms of assessing its potential. As a result, we have, in principle, a mutual agreement to relinquish the Demerara block and allow for interested parties to make advances in that area. We would like to express our appreciation to Guyana for this constructive outcome that benefits all parties.”