CGX Energy Provides Update on Wei-1 Exploration Well, including Receipt of Environmental Permitting for Spudding and Drilling of the Wei-1 Exploration Well

Toronto, Ontario–(Newsfile Corp. – August 22, 2022) – CGX Energy Inc. (TSXV: OYL) (“CGX Energy” or the “Company“) is pleased to provide an update to the agreement to amend the Joint Operating Agreement originally signed between CGX and a subsidiary of Frontera Energy Corporation (“Frontera“), joint venture partners (the “Joint Venture“) in the Petroleum Prospecting License for the Corentyne block offshore Guyana (the “Corentyne Block”), on January 30, 2019, as amended (the “Agreement“), effectively farming into the Corentyne block and securing funding for the Wei-1 exploration well as previously announced on July 22, 2022.

As of today’s date, the Company has received TSX Venture Exchange (“TSXV“) conditional approval for the Agreement. The Agreement still remains subject to certain confirmations from the Government of Guyana relating to the petroleum agreement for the Corentyne Block and final approval from the TSXV.

In addition, the Company announces that the US$19 million convertible loan outstanding to Frontera, previously announced on April 16, 2021 and May 28, 2021, and originally maturing on June 30, 2022, has been extended to July 31, 2022 and then subsequently to September 30, 2022 to allow for the completion of the Agreement (the “Loan Extension“). The Loan Extension remains subject to final TSXV Approval.

Update on Wei-1 Exploration Well

The Company also announces that the Joint Venture, through CGX Resources Inc., operator of the Corentyne Block, has entered into a definitive agreement with Maersk Drilling Holdings Singapore Pte for the use of the Maersk Discoverer to drill the Wei-1 exploration well. As previously announced on August 23, 2021, the Company had elected to exercise its option for a second well from the definitive agreement on the Kawa-1 well announced on April 22, 2021.

Lastly, the Company announces that the Joint Venture has received the required environmental permitting for spudding and drilling of the Wei-1 exploration well from the Guyana Environmental Protection Agency.

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 and the development of a deep-water port in Berbice, Guyana.

Advisories

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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 Energy 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 anticipated change in the parties’ participating interests in the Corentyne Block under the Agreement, including as a result of additional funding obligations of Frontera for the Wei-1 exploration well and the anticipated discharge of an aggregate US$54 million under outstanding convertibles loans to CGX Energy, the parties’ expectations as to drilling plans, operational readiness and timing for spudding the Wei-1 exploration well, the necessary governmental and regulatory approvals to be obtained in connection with the Agreement (including certain confirmations from the Government of Guyana relating to the petroleum agreement for the Corentyne Block and final approval of the TSXV). All information other than historical fact is forward-looking information.

Forward-looking information reflects the current expectations, assumptions and beliefs of CGX Energy, based on information currently available to it and considers the experience of CGX Energy and its perception of historical trends. Although CGX Energy 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 Energy. The actual results of CGX Energy 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 Energy. The annual information form of CGX Energy for the year ended December 31, 2020, and management’s discussion and analysis for the year ended December 31, 2021, and quarter ended June 30, 2022, and other documents CGX Energy files from time to time with the 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 the Company’s profile on SEDAR at www.sedar.com. 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 Energy 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 Todd Durkee, Vice President, Development, CGX Energy, (832) 300-3200, www.cgxenergy.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/134441