#Canada #Calgary #Frontera Energy #CGX Energy #Corentyne Block

Frontera Energy and CGX Energy Provide Update on Corentyne Block License

Calgary, AB, Aug 1, 2025 – Frontera Energy Corporation (TSX: FEC) and CGX Energy Inc. (TSXV: OYL) have recently shared significant updates concerning their activities relating to the Corentyne Block license located offshore Guyana. On March 26, 2025, Frontera and its subsidiaries filed a notice of intent with the Government of Guyana, arguing that there have been violations of the United Kingdom-Guyana Bilateral Investment Treaty and the Guyana Investment Act. This action initiated a three-month negotiation period aimed at finding an amicable resolution.

Previously, on July 23, 2025, the Guyanese government formally rejected the Investors' claims regarding the Corentyne block license. The government reaffirmed that it viewed the Joint Venture's interests as having expired as of June 28, 2024. Nonetheless, it did express a willingness to consider a final meeting with the Investors in October 2025 to explore any potential resolutions, with a decision expected in September 2025.

Despite the government's position, both Frontera Energy Guyana Corp and CGX Resources Inc., the companies involved in the Joint Venture, remain steadfast in their belief that their license for the Corentyne block is still valid and has not been terminated. Although the designated period for negotiation has ended, the Joint Venture reaffirms its commitment to resolve the ongoing disputes peacefully. Should negotiations not lead to a successful conclusion, the Joint Venture is prepared to assert its legal rights.

The Joint Venture collectively holds a 100% working interest in the Corentyne block, which is positioned offshore Guyana. Within this partnership, Frontera Guyana owns a 72.52% interest whereas CGX Resources retains 27.48%. Noteworthy is the 4.52% interest which CGX agreed to assign to Frontera Guyana in 2023. This assignment is pending approval from the Guyanese government, but it is anticipated that it is enforceable between the two companies.

About Frontera Energy Corporation

Frontera Energy Corporation is a publicly-traded Canadian company that focuses on oil and gas exploration, development, production, transportation, storage, and marketing primarily throughout South America. With a diversified portfolio, Frontera has interests in 22 exploration and production blocks in Colombia, Ecuador, and Guyana and operates pipeline and port facilities in Colombia. The company is dedicated to conducting business in a safe, socially responsible, and environmentally considerate manner. Frontera's shares are listed on the Toronto Stock Exchange under the ticker symbol "FEC."

Conclusion

Frontera Energy and CGX Energy continue to navigate the complex legal and operational landscape of their Corentyne block license. As they await the government's response regarding a potential meeting, both companies remain dedicated to protecting their interests and seeking a fair resolution to their ongoing disputes with the Guyanese government. The outcome of these negotiations will greatly impact their future operations and investments in the lucrative sector of oil and gas exploration in the region.