February 5, 2019 |
Frontera Energy said it has extended a bridge loan for CGX Energy as part of a farm-in joint venture agreement in Guyana.
CGX has until the end of September to pay back the loan. In the meantime, Frontera can convert the $8.86m loan into an equity stake in CGX for $0.22 per share.
The two Canadian oil and gas companies agreed to form a joint venture to develop CGX's two shallow water offshore blocks, Corentyne and Demerara, in December last year.
Frontera took a 33.3% stake in the two blocks
Canadian oil and gas company could convert the financing into an equity stake in its partner in Guyana