CGX Energy published its 2024 third-quarter financial statements on November 7, during which it said it is the operator of the Corentyne Block. This is despite Guyana’s Vice President, Bharrat Jagdeo, and Minister of Natural Resources, Vickram Bharrat, publicly stating that the block has been returned to the State.
CGX said, “[it] is the operator of the Corentyne block and currently holds a 27.48% working interest, while Frontera Guyana holds the remaining 72.52% interest in the block.”
The natural resources minister had told reporters at a press conference in August that the block is back with the state. “CGX license has expired. There is no license held by CGX presently… As it is, they don’t have a license, and the Corentyne Block is basically with the State.”
The Guyana government made this decision after CGX and Frontera failed to justify a request for more time with the block. CGX’s appraisal program for its Kawa-1 discovery expired on June 28. However, a few days earlier, the company announced the filing of a notice of potential commercial interest in Wei-1, its second discovery at Corentyne. This was meant to open the door for additional time with the block, subject to regulatory approval. However, Vice President Jagdeo had said the government did not consider the joint venture’s justification satisfactory. Government was not convinced the joint venture could find the money or a capable partner to proceed.
Despite these comments, CGX and Frontera continue to state in public releases that they are committed to the potential of the Corentyne Block, not acknowledging the government’s position. Frontera has been asked multiple times during earnings calls for more information on the joint venture’s plans, and has refused to frontally address the substance of the inquiries.
During last Thursday’s call, an investor of more than two decades, identified as Joe Didonato, pressed Frontera for answers. “I think the whole issue with CGX… I think shareholders have been extremely patient, waiting well over a year for any kind of information regarding what’s going on. I don’t seem to understand why everything has to be so cryptic and so secretive,” he said, urging the CGX partner to explain more about the Guyana situation.
Frontera’s Chief Financial Officer, René Burgos Díaz, urged the investor to pose his questions to CGX instead.
Later that day, Vice President Jagdeo said at a press conference that there are no discussions or negotiations with the joint venture at this time.
“As I am aware now, there are no discussions going on. I don’t know if they have reached out to the Ministry of Natural Resources, but from the briefs that I got from the Minister, they are no negotiations or discussions at this specific point in time,” Mr. Jagdeo told reporters.
