(CGX, 3.Oct.2022) — 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, announce that the parties have agreed to (i) extend the maturity date of the previously announced $19mn convertible loan to CGX dated 28 May 2021, as amended to 30 November 2022; and (ii) amend the previously announced amended Joint Operating Agreement dated July 21, 2022 to extend the outside date by which the conditions precedent to such agreement must be fulfilled to 30 November 30 as the joint venture continues to await the satisfaction of all conditions precedent.
The parties entered into the JOA Amendment to, amongst other matters, increase Frontera’s participating interest in the Corentyne block in exchange for Frontera providing certain funding.
The transactions described herein between Frontera and CGX are related party transactions under Multilateral Instrument 61-101 but are exempt from the obligations to obtain a formal valuation and approval from a minority of shareholders. Nevertheless, CGX obtained a formal valuation for the Corentyne block in connection with the JOA Amendment, in accordance with TSX Venture Exchange requirements. The material change report filed by CGX in connection with a news release issued on 22 July 2022 contains the required disclosure regarding such exemptions and the formal valuation for the Corentyne block obtained by CGX.