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Highlights

  • CGX Energy recorded a CAD 56.4 million impairment on Corentyne exploration and evaluation assets.
  • The carrying value of the Corentyne asset dropped to nil as of June 30, 2025.
  • Board changes include new director appointments and the resignation of two long-serving members.

CGX Energy Inc (TSXV:OYL) has released its unaudited consolidated financial statements and Management Discussion and Analysis for the second quarter of 2025, reporting a CAD 56.4 million impairment loss on its exploration and evaluation assets related to the Corentyne Block in Guyana.

The impairment follows the Government of Guyana’s (GoG) stance during consultation periods, where it declined to acknowledge the rights of the Joint Venture partners — Frontera Energy Guyana Corp. and CGX Resources Inc. Despite contractual obligations being met and external legal reviews affirming the validity of the company’s licenses and agreements, the GoG’s position has hindered CGX’s ability to progress with development activities.

This situation created uncertainty over the future development of the asset, triggering the impairment. As a result, the Corentyne exploration and evaluation asset’s carrying value was reduced to nil as of June 30, 2025, down from CAD 56.2 million at the end of 2024. The company stated that the Joint Venture maintains its view that its rights remain intact and the Petroleum Agreement has not been terminated.

In addition to the financial update, CGX announced leadership changes. Dr. Suresh Narine has resigned from his roles as Executive Director, Guyana, and Executive Co-Chairman of the Board, as well as positions within subsidiaries, to focus on academic work. The company has begun the search for a new Chief Executive Officer.

The board has appointed Alejandra Bonilla, General Counsel & Secretary of Frontera Energy Corporation, and René Burgos Díaz, Chief Financial Officer of Frontera, as new directors. Orlando Cabrales has been elected Chairman of the Board. Director Gabriel de Alba has stepped down from his role.