CGX Energy and Frontera Energy dispute the termination of their petroleum license for the Corentyne block by the Guyana government, claiming their interests remain valid. They are seeking resolution and are prepared for legal action. CGX focuses on oil exploration in the Guyana-Suriname Basin, while Frontera operates in South America, showing positive market performance with a technical ‘Buy’ rating.
CGX Energy and Frontera Energy announced that their joint venture has received a termination notice from the Government of Guyana regarding their Petroleum Agreement and Prospecting License for the Corentyne block offshore. They dispute this termination, asserting that their license and interests are still valid. The joint venture is seeking an amicable resolution but is also ready to leverage legal measures to protect their investments and pursue value generation from the Corentyne block.
CGX Energy Inc. specializes in oil and gas exploration, concentrating on the Guyana-Suriname Basin, and plans to develop a deep-water port in Berbice, Guyana. On the other hand, Frontera Energy Corporation is engaged in oil and natural gas operations across South America with assets in Colombia, Ecuador, and Guyana.
An analysis of the year-to-date (YTD) performance shows a 7.69% price movement, while the average trading volume stands at 51,736 shares. Currently, the technical sentiment consensus carries a ‘Buy’ rating, with a market capitalization of C$42.32M. For further stock analysis regarding OYL, visit TipRanks’ Stock Analysis page.
The dispute between CGX Energy and Frontera Energy against the Government of Guyana centers on the termination of the Petroleum Agreement for the Corentyne block. The joint venture maintains the validity of their interests, seeking both resolution and legal recourse if needed. CGX Energy continues to focus on exploration within the Guyana-Suriname Basin, while Frontera operates across various South American markets. With a positive market sentiment, significant investments hinge on the outcome of this dispute.
Original Source: www.tipranks.com
