Here is the CGX release, the FEC release did not mention Berbice. Reading the wording of the paragraph in bold type, think there is any chance of a transfer of the leases deal to a major player aprroved by Guyana? Thus $omething in return?
And maybe incliuding the C block at some point between now and the results of Wei are known? Or did they just piss away 2 valuable blocks?. Why would they have to pre-announce a pure giveback deal now prior to the terms been reached? A simple voluntarily abondonment of the lease agreement should be rather simple and quick to draft and release with this news release.
Particularly, reading the last sentence regarding interested parties.
Thoughts? CGX Provides Update on Exploration Blocks Offshore and Onshore Guyana
Following Light Oil and Gas Condensate Discovery at The Kawa-1 Exploration Well, CGX and JV Partner to Focus on Corentyne Block
The Wei-1 Exploration Well Expected To Be Spud In 3Q'22
CGX has in Principle Come to Mutual Agreement with the Government of Guyana to Relinquish Demerara and Berbice Blocks
Toronto, Ontario--(Newsfile Corp. - June 16, 2022) - CGX Energy Inc. (TSXV: OYL) ("CGX"), joint venture partner with Frontera Energy Corporation (TSX: FEC) in the Petroleum Prospecting License for the Corentyne block offshore Guyana, today announced that, following constructive discussions with the Government of Guyana, the joint venture will focus exclusively on the exploration opportunities in the Corentyne block. The decision follows the discovery at the Kawa-1 exploration well on the Corentyne block.
CGX will continue to integrate its findings from the Kawa-1 well into preparations for its second exploration well, called Wei-1, to be spud in the third quarter of 2022. The Wei-1 exploration well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana. The Wei-1 exploration well will be drilled in water depth of approximately 1,912 feet (583 metres) to a targeted total depth of 20,500 (6,248 metres) and will target Maastrichtian, Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne block.
Given the importance of the Demerara block to Guyana, CGX has, in principle, reached an agreement with the Government to allow for the relinquishment of the Demerara block through a mutual termination agreement which terms remain to be defined and documented. Such termination agreement would allow relinquishment of the Demerara block in a timely manner, allowing the people of Guyana to benefit from exploration activities under the stewardship of interested parties.
ON Energy, which is a 62.5% owned subsidiary of CGX and is the holder of the Petroleum Prospective Licence of the Berbice block has also been in discussions with the Government of Guyana, and has reached an agreement in principle to relinquish the Berbice block through a mutual termination agreement, which also remains to be defined and documented, so that the Berbice block can be relinquished in a timely manner, similar to the Demerara block.
Professor Suresh Narine, Executive Co-Chairman of CGX's Board of Directors, commented:
"Our long partnership with the Government and People of Guyana is a critical aspect of our decisions. We have a significant opportunity on the Corentyne block following the discovery at Kawa-1. The joint venture is moving ahead rapidly to advance our program and unlock the potential of the Corentyne block, for the benefit of all stakeholders. To do so required a collaborative effort to resolve outstanding commitments for the Demerara and Berbice blocks and we are appreciative of this agreement. We are also engaged with the Government of Guyana in a collaborative effort to maximise opportunities to unlock value for the Berbice Deep Water Port."