Frontera Energy Corporation and CGX Energy Inc., joint venture partners in Petroleum Prospecting Licenses for the Corentyne and Demerara blocks offshore Guyana, on Friday announced that they have entered into a term sheet for a US$19 million loan that will enable CGX to continue to finance its share of costs related to the oil blocks, the Berbice Deepwater Port, and other budgeted costs as agreed to by Frontera.
“Our joint venture with CGX represents a significant growth opportunity for both companies and is rooted in a commitment to the Guyanese government to develop these world class assets with a focus on local engagement and the development of infrastructure. Completing the loan agreement with CGX is an important step forward and the Joint Venture remains firmly on-track to spud its first offshore Guyana well as planned in the second half of this year,” Chief Executive Officer of Frontera Orlando Cabrales was quoted as saying in a statement issued by Frontera.