Guyana Set to Terminate CGX and Frontera's License for Corentyne Offshore Block

Frontera Energy Corporation and CGX Energy have received a notice from the Government of Guyana for the cancelation of license for the Corentyne block offshore the South American country.

According to the joint venture partners, Guyana has taken the position that the license, together with the petroleum agreement with the government, has terminated and that, in the opinion of the government, there are no reasonable grounds to grant any extensions to the Joint Venture in respect of its appraisal or exploration obligations under the license or the petroleum agreement.

Furthermore, the government says that, if it is determined that the license has continued, or that the joint venture holds any other type of license contemplated by applicable legislation, the letter serves as a 30-day notice of the government's intention to cancel such license.

Although the government argues that the license has terminated, it invites the joint venture “on or before February 22nd, 2025, (…) to submit any representations [the Joint Venture] wish[es] [the government] to consider prior to [the government] making [its] final decision as to whether to not cancel any license that may exist.

“Any such license will cease to have effect on March 10, 2025, unless any representation that