Oil explorer Frontera seals deal for one-third working interest in CGX’s offshore blocks

-signing bonus of US$33.3m had been agreed

Frontera Energy Corporation (CNW Group/Frontera Energy Corporation)

Canadian oil explorer Frontera Energy Corporation now has a 33.33 per cent working interest in fellow Canadian oil explorer CGX Energy Inc’s two offshore blocks after a joint venture agreement was completed last week.

“On May 28, 2019, the transfers of the 33.333% interest in both the Corentyne and Demerara Prospecting Licences were completed. The transfers are effective May 20, 2019,” CGX said in a recent statement announcing the release of its unaudited Consolidated Financial Statements for the first quarter of 2019.

CGX, under a renegotiated work plan with the Guyana Government, is required to drill its Utakwaaka well on the Corentyne block by November 27, 2019 with an additional exploration well to be drilled by November 27, 2022. The Corentyne block amounts to 1,125,000 net acres offshore Guyana in shallow water, adjacent to ExxonMobil’s Stabroek block…..

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