TORONTO, Jan. 11, 2019 /CNW/ - CGX Energy Inc. (TSXV:
OYL) ("CGX") and Frontera Energy Corporation (TSX: FEC)
("Frontera") announced today that they have further amended
a letter agreement previously disclosed in a news release of CGX
and Frontera on December 4, 2018 and
amended on December 14, 2018, to
extend the time of the launch of the equity financing in the amount
of approximately US$20 million to
occur on or prior to February 6, 2019
and anticipated to be completed on or prior to March 15, 2019, subject to regulatory
approval.
Further, CGX and Frontera have amended the letter agreement to
extend the time by which CGX Resources Inc., a wholly owned
subsidiary of CGX, and Frontera will enter into a farm-in joint
venture agreement covering CGX's two shallow water offshore
Petroleum Prospecting Licenses in Guyana, the Corentyne and Demerara Blocks as
previously disclosed on December 4,
2018, to on or prior to February 6,
2019.
These changes to the timing are not expected to have any impact
on the timing of the drilling of the Utakwaaka-1 exploration well
on the Corentyne Block which is required to be drilled by
November 27, 2019. As previously
announced by CGX Energy, a definitive rig agreement has been
executed with ROWAN RIGS S.A R.L for the use of the Ralph Coffman
offshore jack-up rig which is targeted to commence during the
second quarter of 2019.
Related Party Transaction
The proposed transactions between Frontera and CGX contemplated
by the letter agreement are related party transactions under
Multilateral Instrument 61-101. For further details, please see the
news releases of CGX and Frontera dated December 4, 2018 and December 17, 2018 and the material change reports
of CGX dated December 10, 2018 and
December 17, 2018.
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 NEWS RELEASE.
About Frontera:
Frontera Energy Corporation is a Canadian public company and
a leading explorer and producer of crude oil and natural gas, with
operations focused in Latin
America. The Company has a diversified portfolio of assets
with interests in more than 30 exploration and production blocks in
Colombia and Peru. The Company's strategy is focused on
sustainable growth in production and reserves. Frontera is
committed to conducting business safely, in a socially and
environmentally responsible manner. Frontera's common shares trade
on the Toronto Stock Exchange under the ticker symbol
"FEC".
If you would like to receive News Releases via e-mail as soon
as they are published, please subscribe here:
http://fronteraenergy.mediaroom.com/subscribe.
Advisories: Fasken Martineau DuMoulin LLP is Canadian
legal advisor to CGX. McMillan LLP is legal advisor to
Frontera.
Cautionary Note Concerning Forward-Looking
Statements
This news release contains forward-looking statements. All
statements, other than statements of historical fact, that address
activities, events or developments that CGX or Frontera believe,
expect or anticipate will or may occur in the future (including,
without limitation, the launch and completion of the equity
financing, the entering into the joint venture agreement, obtaining
regulatory approvals) are forward-looking statements. These
forward-looking statements reflect the current expectations or
beliefs of Frontera or CGX, as the case may be, based on
information currently available to them. Forward-looking statements
are subject to a number of risks and uncertainties that may cause
actual results to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on, the
applicable company. Factors that could cause actual results or
events to differ materially from current expectations include,
among other things: with respect to Frontera, failure to reach
appropriate definitive agreements with CGX; with respect to CGX
(and as applicable Frontera), failure to reach appropriate
definitive agreements with Frontera and obtain regulatory approval;
changes in equity and debt markets; perceptions of the applicable
company's prospects and the prospects of the oil and gas industry
in the countries where the company operates or has investments; and
the other risks disclosed in the applicable continuous disclosure
documents under each company's profile on SEDAR at www.sedar.com.
Any forward-looking statement speaks only as of the date on which
it is made and, except as may be required by applicable securities
laws, each of Frontera and CGX disclaims any intent or obligation
to update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although each
of Frontera and CGX believes that the assumptions inherent in the
forward-looking statements applicable to it are reasonable,
forward-looking statements are not guarantees of future performance
and accordingly undue reliance should not be put on such statements
due to the inherent uncertainty therein.
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SOURCE Frontera Energy Corporation
