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
Forward-Looking Statements:
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.