On 12 March 2019 Frontera Energy acquired the rights to CGX Energy. The transaction is in connection with the February 2019 rights offering by CGX. On 1 February 2019, CGX and Frontera had also announced an executed farm-in joint venture (JV) agreement for the Corentyne and Demerara blocks offshore Guyana that remained subject to government approval. The two companies have agreed to extend the term of CGXâs bridge loan to 30 September 2019. Â Â     On 11 January 2019, they announced an amendment to the letter agreement to extend the date to 6 February 2019 for the two companiesâ farm-in JV. The timing of the equity financing, in the amount of some USD 20 million, is agreed to be completed on or prior to 15 March 2019, subject to regulatory approvals. The JV extension from 31 December 2018 to 6 February 2019 and the finance closing date of 31 January extended to 15 March 2019 are due to documentation delays over the recent Christmas holidays. As previously noted, Guyanaâs government approval is required for the JV.   On 4 December 2018, CGX and Frontera had announced a letter agreement to advance exploration opportunities in the two shallow water offshore blocks. The company deal includes CGX Resources Inc, a wholly-owned subsidiary of CGX, and Frontera entering into a farm-in JV agreement for both offshore blocks. Subject to government approval, terms of the JV include Frontera paying a USD 33.3 million signing bonus to acquire a 33.33% interest in each of the two shallow water blocks. Frontera will also pay one-third of applicable costs plus an additional 8.333% of CGXâs direct drilling costs for initial commitment wells on each block. CGX will remain operator of both blocks. The Corentyne Block is adjacent and south of the prolific Stabroek Block, and the December 2018 Pluma 1 discovery is located near the border of the CGX-operated acreage.    Also on 11 January 2019 CGX reconfirmed plans for the Utakwaaka 1 new-field wildcat (NFW) well on the Corentyne Block. The high impact well should be drilled by 27 November 2019. On 17 December 2018 CGX had reported it secured Rowanâs âRalph Coffmanâ jack-up rig to drill the Utakwaaka 1 NFW, and per terms of the one-well contract signed on 14 December, the wildcat well is on schedule to be drilled before end-November 2019.
Frontera Energy acquired the rights to CGX Energy. The transaction is in connection with the February 2019 rights offering by CGX. On 1 February 2019, CGX and Frontera had also announced an executed farm-in joint venture (JV) agreement for the Corentyne and Demerara blocks offshore Guyana