CGX strikes loan deal

C GX Energy Inc, a Canadian oil and gas explorer, has secured a US$2.5 million senior loan from its joint venture partner, Frontera Energy Corp, to fund its share of corporate and operational costs in Guyana’s Corentyne Block.

The US$2.5 million loan will be available for drawdown in tranches on a non-revolving basis for a period of six months, beginning upon the completion of the conditions precedent to the first tranche drawdown. During this period, CGX may request drawdowns, provided that the maximum amount of any single tranche does not exceed US$1.9 million and that the aggregate total of all drawdowns does not surpass US$2.5 million.

The loan, together with all accrued interest, is due and payable one year after the date it was arranged. Interest on the principal amount outstanding will accrue at a rate of 19.32 per cent per annum, compounded monthly.

The arrangement remains subject to customary conditions, including the Canadian company obtaining regulatory approvals.

This loan follows months after Frontera and CGX urged the Guyanese government to resolve issues surrounding the Corentyne Block licence. The two companies maintained that they would seek legal avenues to assert and defend their interests if those efforts failed, after receiving another communication from the government regarding the termination of their licence.

On 23 July 2025, the Government of Guyana, through its legal counsel, reaffirmed its view that the joint venture’s interest had expired on 28 June 2024, but indicated that it might consider a final meeting. (Offshore Energy)