CGX Energy Files Second Quarter Financial Statements, Announces Impairment of the Corentyne Block, and Changes to the Board of Directors
CGX Energy (TSXV: OYL) has announced significant developments including a $56.4 million impairment loss on its Corentyne Block exploration assets in Guyana. The impairment follows challenges with the Government of Guyana's (GoG) unwillingness to recognize the Joint Venture's rights during consultation periods.
Despite maintaining that their interests and license remain valid, the company has written down the Corentyne E&E asset's carrying value to $Nil as of June 30, 2025, from $56.2 million in December 2024. Additionally, the company announced major leadership changes, including the resignation of Dr. Suresh Narine as Executive Director and Co-Chairman, and the appointment of Orlando Cabrales as Chairman, along with new directors Alejandra Bonilla and René Burgos Díaz.
CGX Energy (TSXV: OYL) ha reso noto sviluppi rilevanti, tra cui una perdita di valore di 56,4 milioni di dollari sugli asset di esplorazione del blocco Corentyne in Guyana. L'ammortamento deriva dalle difficoltà legate alla mancata volontà del Governo della Guyana (GoG) di riconoscere i diritti della joint venture durante i periodi di consultazione.
Pur sostenendo che i propri interessi e la licenza restino validi, la società ha svalutato il valore contabile dell'attività di esplorazione e valutazione del Corentyne a $Nil al 30 giugno 2025, a fronte di 56,2 milioni di dollari a dicembre 2024. Inoltre, sono stati annunciati importanti cambiamenti ai vertici: le dimissioni del dott. Suresh Narine da direttore esecutivo e co-presidente e la nomina di Orlando Cabrales come presidente, nonché l'ingresso dei nuovi direttori Alejandra Bonilla e René Burgos Díaz.
CGX Energy (TSXV: OYL) ha comunicado novedades importantes, entre ellas una pérdida por deterioro de 56,4 millones de dólares sobre los activos de exploración del Bloque Corentyne en Guyana. El deterioro se produjo tras las dificultades derivadas de la negativa del Gobierno de Guyana (GoG) a reconocer los derechos de la empresa conjunta durante los periodos de consulta.
Aunque la compañía afirma que sus intereses y la licencia siguen siendo válidos, ha reducido el valor contable del activo de E&E del Corentyne a $Nil a fecha 30 de junio de 2025, desde 56,2 millones de dólares en diciembre de 2024. Asimismo, se anunciaron cambios directivos relevantes: la dimisión del Dr. Suresh Narine como director ejecutivo y copresidente, la designación de Orlando Cabrales como presidente y la incorporación de las nuevas directoras Alejandra Bonilla y René Burgos Díaz.
CGX Energy (TSXV: OYL)는 가이아나 코렌타인 블록 탐사 자산에 대해 5,640만 달러의 손상차손을 포함한 중대한 사안을 발표했습니다. 이 손상은 정부(GoG)가 협의 기간 동안 합작투자의 권리를 인정하려 하지 않은 데 따른 문제에서 비롯되었습니다.
회사는 이해관계와 라이선스가 유효하다고 주장하면서도, 2025년 6월 30일 기준 코렌타인 E&E 자산의 장부가를 $Nil로 감액했으며 이는 2024년 12월의 5,620만 달러에서의 조정입니다. 또한 Dr. Suresh Narine의 전무이사 겸 공동의장 사임, Orlando Cabrales의 의장 선임, 새 이사인 Alejandra Bonilla 및 René Burgos Díaz의 임명 등 주요 임원 변동도 발표했습니다.
CGX Energy (TSXV: OYL) a annoncé des développements importants, dont une perte de valeur de 56,4 millions de dollars portant sur les actifs d'exploration du bloc Corentyne au Guyana. Cette dépréciation fait suite aux difficultés liées au refus du gouvernement du Guyana (GoG) de reconnaître les droits de la coentreprise durant les périodes de consultation.
Tout en maintenant que ses intérêts et sa licence demeurent valides, la société a ramené la valeur comptable de l'actif E&E du Corentyne à $Nil au 30 juin 2025, contre 56,2 millions de dollars en décembre 2024. Elle a également annoncé des changements majeurs à la direction : la démission du Dr Suresh Narine de son poste de directeur exécutif et coprésident, la nomination de Orlando Cabrales en tant que président, ainsi que l'arrivée des nouveaux administrateurs Alejandra Bonilla et René Burgos Díaz.
CGX Energy (TSXV: OYL) hat bedeutende Entwicklungen bekanntgegeben, darunter einen Wertminderungsaufwand von 56,4 Mio. USD für die Explorationswerte des Corentyne-Blocks in Guyana. Die Wertminderung erfolgt nach Schwierigkeiten, da die Regierung von Guyana (GoG) während der Konsultationszeiten nicht bereit war, die Rechte des Joint Ventures anzuerkennen.
Obwohl das Unternehmen betont, dass seine Interessen und die Lizenz weiterhin bestehen, hat es den Buchwert des Corentyne E&E-Vermögenswerts zum 30. Juni 2025 auf $Nil abgeschrieben, nach 56,2 Mio. USD im Dezember 2024. Außerdem wurden bedeutende Führungswechsel angekündigt: der Rücktritt von Dr. Suresh Narine als Executive Director und Co-Chairman, die Ernennung von Orlando Cabrales zum Chairman sowie die Bestellung der neuen Direktoren Alejandra Bonilla und René Burgos Díaz.
- Company maintains legal assessment confirms their interests and licenses for Corentyne block remain valid
- Strengthened board leadership with appointment of experienced oil & gas executives
- Significant $56.4 million impairment loss on Corentyne Block exploration assets
- Government of Guyana's unwillingness to recognize Joint Venture rights creates operational uncertainty
- Resignation of key executive Dr. Suresh Narine from leadership positions
- Carrying value of Corentyne E&E asset reduced to $Nil from $56.2 million
Toronto, Ontario--(Newsfile Corp. - August 13, 2025) - CGX Energy Inc. (TSXV: OYL) ("CGX" or the "Company") today announced the release of its unaudited consolidated financial statements and Management Discussion and Analysis for the second quarter of 2025 (together, the "Financial Disclosures"), which include the recognition of an impairment loss of
The Company evaluated the Corentyne exploration & evaluation asset's recoverability given the Government of Guyana's ("GoG") conduct and communications, and its unwillingness to recognize the rights of Frontera Energy Guyana Corp. ("Frontera Guyana") and CGX Resources Inc. ("CGX Resources" and together with Frontera Guyana, the "Joint Venture") during the consultation periods, which have since expired.
Although all contractual requirements of the Company have been met and an external legal assessment determined that the Company's interests in the licenses and agreements for the Corentyne block remain valid, the GoG's positions mentioned above have restricted the Company's ability to develop activities under those licenses and agreements. This situation has led to uncertainty regarding the asset's future development and constituted an impairment indicator. Consequently, the Company recognized an impairment of
The Joint Venture remains firmly of the view that its interests in, and the license for, the Corentyne block remain in place and in good standing and that the Petroleum Agreement has not been terminated. The Joint Venture remains committed to working with the GoG to resolve these issues amicably, while preparing to assert and protect our legal and contractual rights through all available legal remedies, as necessary.
The Company also announced that, effective today, Dr. Suresh Narine has resigned from his positions as Executive Director, Guyana and Executive Co-Chairman of the Board of Directors of CGX (the "Board") and from his positions with the Company's subsidiaries to pursue academic endeavours. The Company has initiated a search for a permanent Chief Executive Officer and will provide a further update when available.
CGX is pleased to announce the appointment of Alejandra Bonilla and René Burgos Diaz as new directors, and the election of Orlando Cabrales, as Chairman of the Board. In connection with such appointments, Gabriel de Alba has decided to step down from his role as a director of the Company.
"The Board would like to extend our thanks to Gabriel and Suresh for their years of service and strategic leadership of the Company, and wishes them both all the best in their future endeavours," said Orlando Cabrales, Chairman of the Board.
Alejandra Bonilla is the General Counsel & Secretary of Frontera Energy Corporation ("Frontera"). She has more than 20 years of experience in the oil and gas industry and has held different roles in Frontera from 2011 to 2020. From April 2020 to March 2021, she was appointed partner of the energy practice at Dentons Cardenas & Cardenas, an international law firm. In March 2021, Mrs. Bonilla rejoined Frontera, at which time she was appointed General Counsel & Secretary.
René Burgos Díaz is the Chief Financial Officer of Frontera since June 2022. He is a seasoned executive with over 20 years of experience in corporate finance, financial markets, and operational leadership, with deep expertise in Latin America and the energy sector. Prior to joining as Chief Financial Officer, he served on Frontera's Board of Directors from December 2019 to June 2022, including roles on both the Audit Committee and the Compensation and Human Resources Committee.
Following these changes, the Board consists of: Orlando Cabrales (Chairman and Director), Dennis Mills (Director), René Burgos Díaz (Director), and Alejandra Bonilla (Director).
The Financial Disclosures will be posted on the Company's website at www.cgxenergy.com and on SEDAR+ at www.sedarplus.ca. All values in the Financial Disclosures and this press release are in United States dollars unless otherwise stated.
About CGX
CGX is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana.
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.
Cautionary and Forward-Looking Statements:
This press release contains forward‐looking information within the meaning of Canadian securities laws. Forward‐looking information relates to activities, events or developments that CGX believes, expects or anticipates will or may occur in the future. Forward‐looking information in this press release includes, without limitation, statements relating to the Joint Venture's continuing efforts and investments in the Corentyne block, the significant prospective resources discovered therein, the outcome of the search for a new Chief Executive Officer and the licensing status of the Corentyne block. All information other than historical fact is forward‐looking information. Forward‐looking information reflects the current expectations, assumptions and beliefs of CGX based on information currently available to it and considers the experience of CGX and its perception of historical trends. Although CGX believes that the assumptions inherent in the forward‐looking information are reasonable, forward‐looking information is not a guarantee of future performance and accordingly undue reliance should not be placed on such information. Forward‐looking information is subject to a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to CGX and the Joint Venture, including the ability of the Joint Venture to reach an agreement with the Government of Guyana, the impairment and its possible reversal. No assurance can be given that such an agreement with the Government of Guyana will be reached or that the impairment will be reversed . The actual results of the Joint Venture may differ materially from those expressed or implied by the forward‐looking information, 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 CGX. CGX's management's discussion and analysis for the year ended December 31, 2024, and other documents CGX files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge by referring to CGX's profile on SEDAR+ at www.sedarplus.ca. All forward‐looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, CGX disclaims any intent or obligation to update any forward‐looking information, whether as a result of new information, future events or results or otherwise.
For further information: Please contact Daniel Sanchez, CFO and Interim CEO of CGX Energy Inc. info@cgxenergy.com, (281) 747-9980, www.cgxenergy.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262469
FAQ
What caused CGX Energy's $56.4 million impairment loss in Q2 2025?
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