On 4 December 2018, CGX Energy and Frontera Energy announced a letter agreement to advance exploration opportunities in the Corentyne and Demerara blocks offshore Guyana. The company deal includes CGX Resources Inc, a wholly-owned subsidiary of CGX, and Frontera entering into a farm-in joint venture (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.
CGX Energy and Frontera Energy announced a letter agreement to advance exploration opportunities in the Corentyne and Demerara blocks offshore Guyana.