CGX Energy Inc. has reported a US$56.4 million impairment loss on its Corentyne Block assets for the second quarter of 2025, citing ongoing disputes with the Government of Guyana (GoG).
In its unaudited financial statements and Management Discussion and Analysis, CGX said the loss stemmed from “the Government of Guyana’s conduct and communications, and its unwillingness to recognize the rights of Frontera Energy Guyana Corp. and CGX Resources Inc. during the consultation periods, which have since expired”.
The company stated, “Although it met all contractual obligations and external legal assessments confirmed its licenses and agreements remain valid, the GoG’s positions…have restricted the company’s ability to develop activities under those licenses and agreements.”
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CGX said this uncertainty led to the impairment, resulting in the Corentyne asset’s carrying value being reduced to nil as of June 30, down from US$56.2 million at year-end 2024.
“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,” CGX stated. The company said it will continue efforts to resolve the dispute amicably while preparing to “assert and protect our legal and contractual rights through all available legal remedies, as necessary”.
CGX also announced the resignation of Dr. Suresh Narine from his roles as Executive Director, Guyana and Executive co-Chairman of the Board, as well as from all subsidiary positions, to pursue academic work. A search for a permanent CEO has been launched.
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Board changes include the appointment of Alejandra Bonilla and René Burgos Díaz as directors, and the election of Orlando Cabrales as Chairman. Gabriel de Alba has stepped down as a director.
“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,” Cabrales said.
The current Board is comprised of Cabrales, Dennis Mills, Burgos Díaz, and Bonilla.
