Latest update April 3rd, 2026 12:35 AM
CGX secures US$2.5M lifeline
…insists Corentyne Block licence still alive despite Govt. declaring it dead
(Kaieteur News) – Despite the Government of Guyana position that joint venture (JV) partners CGX Energy Inc. and Frontera Energy Corporation future in the Corentyne Block has come to an end, Canada-based CGX has tapped a US$2.5 million loan from Frontera to fund its share of corporate working capital and other agreed-upon expenditures.
The JV has been adamant that their licence is still active. According to CGX, it has already drawn down and received US$1.9 million under the facility. The loan agreement was executed by CGX’s subsidiary, CGX Resources Inc., through a Senior Secured Loan Facility with Frontera Energy Corporation via one of its subsidiaries.
The US$2.5 million will be available in tranches on a non-revolving basis for six months, commencing once conditions precedent to the first drawdown are met. The loan and accrued interest become due one year after its start date, with interest accruing at 19.32% per annum, compounded monthly. The company noted that the loan remains subject to customary conditions, including regulatory approvals.
Moreover, CGX had disclosed that on November 4, 2025, government through its counsel communicated its willingness to participate in a final “Without Prejudice” meeting with the JV to discuss the dispute.
“The Government proposed November 25 or December 2, 2025, as possible dates for this meeting,” CGX said. It remains unclear whether this meeting was held. Kaieteur News on Wednesday contacted Minister of Natural Resources Vickram Bharrat for an update, but up to press time none was received.
The JV has stated that they remain open to engaging in good faith discussions with the government and, “continues to firmly maintain that its interests in, and the license for, the Corentyne block remain valid and in good standing and that the Petroleum Agreement for such block has not been terminated.” However, government has repeatedly reaffirmed that the JV’s interest expired on June 28, 2024.
In a September interview with this publication, Minister Bharrat reiterated government’s stance while signalling openness to broader investment talks. “At this time, I can’t say what that engagement, when it will be or what nature that engagement will take, but we maintain our position that the licence has come to an end and we are open to talks on how do we move forward,” he said.
He added that government remains willing to meet investors. “As you know, we are government that facilitates investment and investors, so we’re willing to meet with any partner once it’s in the interest of Guyana and development of our country,” the minister said.
Kaieteur News had reported that after more than two decades of exploration, the JV finally struck oil at the Kawa-1 well in January 2022. Just ahead of the June 28, 2024 deadline for the block’s appraisal programme, the JV submitted a Notice of Potential Commercial Interest to government for the Wei-1 well, on June 26. The government later said stringent conditions would need to be met to retain the block. In March 2025, the government issued a 30-day notice and gave the oil companies a chance to make representations. Government was open to good-faith negotiations within the specified timeframe.
Government eventually cut ties with the JV in relation to the Corentyne Block and said that it is of the view that there are no reasonable grounds to grant an extension to CGX and Frontera for their exploration and appraisal obligations. However, the JV has maintained that its interest in the Corentyne Block remains valid, even after receiving a formal communication from the government stating that the Petroleum Prospecting Licence (PPL) and Petroleum Agreement had ended.
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