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Frontera CEO insists joint-venture meets legal requirement to keep Corentyne Block
Chief Executive Officer (CEO) of Canadian oil explorer, Frontera Energy Corporation, Orlando Cabrales (Frontera CEO)Kaieteur News- The Chief Executive Officer (CEO) of Canadian oil explorer, Frontera Energy Corporation, Orlando Cabrales is insisting that the company and its partner CGX Inc. has met the legal requirements to hold on to Guyana’s Corentyne Block.
The Government of Guyana (GoG) had repossessed the Corentyne oil block from Frontera and CGX following a series of unmet obligations.
In 2023, CGX, the operator of the block, discovered oil at its Wei-1 well, located 14 kilometers west of the Kawa-1 discovery within the block. Although oil was found at Kawa-1 in January 2022, CGX and Frontera chose to focus on the Wei-1 well. Further drilling in the Corentyne Block was said to depend on positive results at Wei-1, with the joint venture reportedly having no further obligations beyond this well. However, before the licence expired CGX submitted a notice of potential commercial interest to the GoG, hoping for additional time to appraise the Wei-1 discovery and evaluate its viability.
However, despite the company’s hopes for additional time to assess oil prospects, the government remained cautious and repossessed the block.
On Thursday, Cabrales insisted that the companies met all legal requirements to maintain the Corentyne Block – Bnamericas reported.
“We remain committed to the potential development of the block,” Cabrales told investors in a quarterly results conference call. “That conviction is supported by the discoveries. We have complied with the conditions of the exploration license and are considering different alternatives to protect our interests in the license…I have nothing more to say at this time,” Cabrales said.
On the same day, Guyana’s Vice President (VP) Dr Bharrat Jagdeo stated that he is not aware of any discussions with the CGX-Frontera joint venture in relation to granting an extension to the exploration licence for the Corentyne Block.
Guyana’s Vice President (VP) Dr Bharrat Jagdeo
“As I’m aware now there are no discussions going on, that’s what I’m aware of. I don’t know if they had reached out to the ministry of natural resources but from the briefs that I got from the minister they are have been no negotiations or discussions at this specific point in time,” Jagdeo said.
Moreover, in its Third Quarter Earnings highlights, Frontera said that in relation to its Guyana assets, the company and joint-venture partner remain committed to the potential development of the Corentyne Block. The company based this statement based on the discoveries made in the block.
“While we continue to remain confident about the potential of the Corentyne block, the Company is reviewing all available alternatives to safeguard its interest in the block and Guyana,” it was further stated.
For their part, CGX said the same thing in their Third Quarter Earning highlights.
CGX said it is the operator of the Corentyne block and currently holds a 27.48% working interest, while Frontera Guyana holds the remaining 72.52% interest in the block.
Pursuant to the amendment dated August 9, 2023 to the joint operation agreement dated January 30, 2019 between CGX Resources Inc., and Frontera Guyana, the company has agreed to transfer an additional 4.52% participating interest to Frontera Guyana, which transfer is subject to approval from the Government of Guyana.
(Frontera CEO insists joint-venture meets legal requirement to keep Corentyne Block)
- Canadian oil explorer, Corentyne Oil Block, Frontera Energy Corporation, Kawa-1 discovery, Orlando Cabrales
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