Frontera says Guyana oil license remains valid amid government cancellation notice
Frontera Energy, a Canadian oil company, said Monday that its exploration license for the Corentyne Block off the coasts of Guyana is still valid. It's evaluating all legal options in order to assert its rights.
Guyanese authorities gave Frontera Energy and CGX, the joint license holders, a 30 day cancellation notice for not meeting contract obligations.
The Corentyne Block was seen as an important effort to diversify Guyana’s oil industry. It is currently dominated by Exxon Mobil and a consortium.
Frontera Energy and CGX Energy, the joint operators who hold the license, have returned only this one block in Guyana in the last few years due to budget constraints.
The Guyanese Government had given the joint-venture until February 22 for arguments to be reconsidered. The license will expire on 10 March if their arguments are not reviewed favorably.
Frontera Energy announced its quarterly and annual earnings on Monday. The company reported a nearly 8 percent increase in the fourth quarter production compared with the same period last year. Production reached 42,406 barrels equivalents per day (boed).
The shares dropped 4.1% during afternoon trading as the company reported a loss of $29.4 millions, or 36 cents a share. This compares to a profit of $92.0million, or $1.08 a share, for the fourth quarter in 202.
Calgary-based company, a Canadian company, expects to produce 40.000 boed during the first quarter this year due to unexpected failures of wells in its light and medium assets. The company claims it is addressing the issue.
(source: Reuters)
