TORONTO, April 6, 2018 /CNW/ - CGX Energy Inc. ("CGX Energy" or the "Company") announced today the release of its audited consolidated financial results for the year ended December 31, 2017, together with its Management Discussion and Analysis. These documents will be posted on the Company's website at www.cgxenergy.com and SEDAR at www.sedar.com.
Professor Suresh Narine, Executive Chairman and Executive Director (Guyana) of CGX Energy commented: "2017 has been a pivotal year for the Company, witnessing the renegotiation of its workplans and renewal of its licenses. During this period, the Company, supported by its major shareholder, Frontera Energy Corporation ("FEC"), has entered into a process to restructure its debt. FEC has the exclusive right to lead these negotiations and as this process proceeds, the Company has been able to further secure the financial support of FEC to address all of its workplan requirements in Guyana until the restructuring is complete, at which time the Company expects to pursue recapitalization, including possible farm-ins. The Company has begun to award contracts to third parties for technical preparative work required for its well-design activities on the 100 % held Corentyne PPL, which are on target to allow the Company to drill an exploration well on the Corentyne Block by November of 2019. Request-for-proposals (RFPs) are also currently being evaluated and will be awarded shortly to conduct a geochemical survey on the Company's 62.5% held Berbice PPL. Simultaneously, the Company is proceeding with processing and analysis of data on its 100% held Demerara PPL.
"The Company has also resumed developmental civil works on its wholly-owned Grand Canal Industrial Estates Deep Water Port and Logistics Base in Region 6, East Berbice-Corentyne, Guyana and will be undertaking several major civil work projects which are about to be tendered for bids in Guyana. 2018 is therefore a very intense year of activities for the Company, which has moved into new headquarters in Georgetown, Guyana to allow for the expansion of its activities from 2018 onwards. I would like to thank all creditors and shareholders for their support and confidence in the Company and the Government of Guyana for its collaboration as CGX Energy Inc. moves ahead to aggressively pursue exploration on its blocks in the exciting climate established by the remarkable string of commercial discoveries of petroleum in Guyana's basin."
2017 Year-End Overview and Highlights
- On December 15, 2017, the Company successfully renegotiated its work commitments under its Demerara, Corentyne and Berbice Petroleum Prospecting Licenses with the Government of Guyana. As part of the renegotiation, the Company relinquished 25% of the acreage of both the Corentyne and Demerara blocks to the Government of Guyana.
- On April 26, 2017, the Company entered into a bridge loan agreement (the "Bridge Loan III") with FEC in the aggregate principal amount of up to US$3,100,000. The Bridge Loan III is a non-revolving term facility. The Bridge Loan III accrues interest at an annual rate of 5% per annum and is repayable in full including all accrued interest in April 2018. FEC has the right to take the pledged security of shares of CGX's subsidiaries in an event of default under the Bridge Loan III. As of March 28, 2018, the Company has drawn upon all of the facility, including the extended amounts as agreed to with FEC under amendments to the Bridge Loan III.
- On April 5, 2018, in an effort to meet its working capital requirements to July 2018, the Company and FEC entered into a non-binding letter of intent for an additional amount of US$8,530,867 under the terms of Bridge Loan III, of which US$3,891,600 is available immediately. The receipt of the funds from this additional bridge loan is contingent on the completion of certain events, including but not limited to the signing of a definitive agreement and if required, the receipt of regulatory approval.
About CGX Energy
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
This news release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur in the future. These forward-looking statements are based on certain key expectations and assumptions made by CGX Energy. CGX Energy believes the expectations and assumptions on which it develops forward-looking statements are reasonable; however, undue reliance should not be placed on forward-looking statements as there can be no assurance they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition, other risks that may affect the forward-looking statements in this news release are outlined further in the Company's most recent Annual Information Form on SEDAR at www.sedar.com.
The forward-looking statements contained in this news release are made as of the date hereof and CGX Energy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE CGX Energy Inc.
For further information: please contact: Brooks Lyons, Manager, Commercial & Business Development at (832) 300-3200 or [email protected]