CGX now worth zero dollars, director resigns with immediate effect

August 14, 2025

While oil companies and their operations, productions and join ventures in Guyana are smiling all the way to the bank, one company (CGX) has gone belly-up as its partnership fails to get the Nodd of Government. CGX after spending two decades conducting exploration activities in the Corentyne River, made its first oil discovery in January 2022. It is a Canadian company that first entered Guyana in 1997. Today, the company said it is worth zero dollars.

CGX Energy has written the value of its Corentyne oil prospect in Guyana down to zero after recognizing a US$56.4M impairment charge in its second-quarter 2025 accounts.

The company says the move follows conduct by the Government of Guyana that, it claims, effectively prevented the joint-venture partners from progressing development work during consultation periods and therefore created a realistic risk that the asset’s value could not be recovered.

Put simply, an impairment is an accounting recognition that an asset on the balance sheet is unlikely to yield the economic benefits previously expected.

CGX explained that, although an external legal assessment concluded the joint-venture’s contractual interests and licences for the Corentyne block remain valid, the government’s refusal to recognise those rights during the relevant consultation windows constrained activity under the licences and therefore constituted an impairment indicator.

As a result, the Corentyne exploration and evaluation (E&E) asset was reduced to a carrying value of US$ Nil at June 30, 2025—it stood at US$56.2 million at December 31, 2024.

Dr. Narine Gone!

The announcement came alongside a shake-up at the top of CGX. Effective immediately, Dr. Suresh Narine, also resigned as Executive Director, Guyana and Executive Co-Chairman to pursue academic endeavours, and long-serving director Gabriel de Alba has also stepped down.

The board has since appointed Alejandra Bonilla and René Burgos Díaz as directors and elected Orlando Cabrales as chairman. The company has also begun a search for a permanent chief executive officer, and said it will provide updates when that process advances.

“The Board would like to extend our thanks to Gabriel and Suresh for their years of service and strategic leadership of the Company, and wishes them both all the best in their future endeavours,” Mr Cabrales said.