Corentyne Block

The Company, through CGX Resources Inc. (“CRI”) is the operator of the Corentyne Block under a Joint Operating Agreement (“JOA”) with Frontera Energy Guyana Corp. (“FEGC”). CRI contracted PGS Geophysical AS (“PGS”) to provide acquisition and processing of a full broadband marine 3D seismic survey over a northern segment of the Corentyne Block located offshore Guyana. The seismic acquisition was completed on 2nd November 2019 and produced seismic data covering approximately 582 km² of the northern portion of the Corentyne Block. PGS completed Time (PreStack Time Migration) and Depth (PreStack Depth Migration) processing of these data on 5th June 2020. This survey augments the previously acquired seismic data over the Corentyne Block. In 1999, the Company acquired and processed 1,800 line kilometers of 2D seismic data. Additionally in 2008, 505 km² of 3D seismic data was acquired and processed as well as in 2011, 1,160 km² of 3D seismic data was acquired and processed.

CRI has completed the evaluation of the recently processed 3D seismic data and has identified two potentially highly prospective large channel sand reservoir complexes. These channel complexes have been interpreted to contain multiple high potential prospects located in the northern region of the Corentyne Block. This region is located in close proximity to the Stabroek Block offshore Guyana and Block 58 offshore Suriname. The Pluma and Haimara discoveries in the Stabroek Block are located approximately 2 and 8 miles respectively, from the border of the northern region of the Corentyne Block. Maka Central, Kwaskwasi-1 and Sapakara West discoveries in Block 58 are located approximately 7, 15 and 20 miles respectively, from the border of the northern region of the Corentyne Block.

The prospects mapped in the northern Corentyne Block are interpreted to be situated at the same geological horizons as the nearby significant discoveries already proven in the Stabroek Block and Block 58. The prospects identified on the northern region of the Corentyne Block have been interpreted to share the same proven hydrocarbon generating basin and intervals in which the current discoveries are located. These prospects are primarily stratigraphic traps composed of sandstone accumulations and deemed to be analogous to many of the discoveries already proven to be successful in the Guyana basin spanning both Guyana and Suriname.

The prospects in the northern region of the Corentyne Block have been high-graded and have been mapped within the Upper Cretaceous, Santonian and Miocene intervals. CRI has prioritized and ranked the prospects. The prospects are located in water depths ranging from approximately 500 to 3,600 feet and are estimated to be at a drilling depth of between approximately 11,000 to 21,700 feet.

The current high-graded prospect identified in the northern region of the Corentyne Block has been named Kawa, after the iconic Kawa Mountain which overlooks the village of Paramakatoi in the Pakaraima Mountains of Guyana. It is interpreted to be a Santonian-aged stratigraphic trap and is expected to have a reservoir interval potentially similar to what has been penetrated in nearby discoveries. Additional prospects are being evaluated by the Company.