TORONTO, Feb. 1, 2019 /CNW/ - CGX
Energy Inc. (TSXV: OYL) ("CGX")
and Frontera Energy Corporation (TSX: FEC) are pleased to
announce today the execution of a farm-in joint venture agreement
covering CGX's two shallow water offshore Petroleum Prospecting
Licenses in Guyana, the Corentyne
and Demerara Blocks. These agreements remain subject to Guyanese
government approval.
CGX and Frontera are also pleased to announce today that they
have entered into an amended and restated bridge loan agreement,
pursuant to which Frontera has agreed to extend the term of CGX's
April 25, 2018 bridge loan to
September 30, 2019 and to update
certain other terms and conditions. Frontera has the option to
convert up to US$8.8 million
principal amount of the loan into CGX common shares at a conversion
price of US$0.22 per share (being the
US dollar equivalent of CDN$0.29,
which was the closing price of the shares of CGX prior to the
December 4, 2018 announcement of the
amendment to the bridge loan), at any point on or before maturity
of the loan.
For additional details regarding these agreements, please refer
to CGX's press releases of December 4,
2018 and January 11, 2019 and
the related material change reports. In addition, copies of these
agreements will be posted under CGX's profile at www.sedar.com in
due course.
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".
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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, 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 CGX (and
as applicable Frontera), failure to 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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content:http://www.prnewswire.com/news-releases/cgx-energy-and-frontera-announce-execution-of-farm-in-joint-venture-agreement-and-bridge-loan-300788070.html
SOURCE Frontera Energy Corporation
