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Reuters
13-03-2025
- Business
- Reuters
Guyana cancels Frontera-CGX Energy JV's prospecting license
March 13 (Reuters) - Guyana's government has cancelled the Frontera ( opens new tab and CGX Energy (OYL.V), opens new tab joint venture's prospecting license for the Corentyne block, the companies said on Thursday.
Reuters
10-03-2025
- Business
- Reuters
Frontera says Guyana oil license remains valid amid government cancellation notice
March 10 (Reuters) - Canadian oil producer Frontera Energy ( opens new tab said on Monday that it believes its license to explore the Corentyne block off the coast of Guyana remains valid and it is assessing all legal options to assert its rights. The Guyanese government gave Frontera and CGX Energy (OYL.V), opens new tab, the joint operators that hold the license, a 30-day cancellation notice over unmet contract obligations. The Corentyne block was seen as a key effort to diversify Guyana's oil industry, currently dominated by a consortium led by Exxon Mobil (XOM.N), opens new tab. It is also the only area Frontera and CGX Energy (OYL.V), opens new tab - the joint operators that hold the license - have left in Guyana after they returned two other blocks in recent years over budget constraints. The Guyanese government had given the joint venture until February 22 to submit arguments for reconsideration. The license is set to expire on March 10 unless their representations are favorably reviewed. Frontera Energy reported its quarterly and yearly earnings on Monday, showing a nearly 8% increase in fourth-quarter production compared to the same quarter last year, reaching 42,406 barrels of oil equivalent per day (boed). However, shares fell 4.1% in afternoon trade as the company posted a net loss of $29.4 million, or 36 cents per share, compared to a net income of $92.0 million, or $1.08 per share, in the fourth quarter of 202 The Calgary, Canada-based company expects to produce 40,400 boed in the first quarter of this year to due to unexpected well failures within its light and medium assets, which the company says it was addressing.
Reuters
11-02-2025
- Business
- Reuters
Guyana issues 30 day notice to cancel Frontera, CGX Energy's Corentyne license
Companies CGX Energy Inc Frontera Energy Corp Exxon Mobil Corp Feb 11 (Reuters) - Guyana's government gave a 30-day notice to CGX Energy (OYL.V), opens new tab and Frontera Energy ( opens new tab for cancellation of their joint venture's license for the Corentyne block, the Canadian energy companies said on Tuesday. While the companies did not mention why the government issued the notice, the South American nation has earlier expressed a lack of confidence in the firms being able to find a financial partner for their project. The government plans to cancel the petroleum agreement with the joint venture along with the license and said in the letter that it saw no "reasonable grounds" to grant any extensions. However, the letter asked the joint venture to submit representations to the government before February 22 for them to reconsider whether to not cancel any license. The license will cease to have effect on March 10, unless the representations are favorably considered by the government, the letter said. Guyana's oil industry is currently dominated by a consortium led by Exxon Mobil (XOM.N), opens new tab, and development of the Corentyne field has been as an attempt to diversify the country's dependence on the U.S. major. It is also the only area Frontera and CGX have left in Guyana after they returned two other blocks earlier. Frontera and CGX Energy said their license for the Corentyne block remain in place and the petroleum agreement had not been terminated. "Notwithstanding the foregoing, the joint venture is assessing all legal options available to it to assert its rights and will respond to the Government," they said.
