Frontera Energy & CGX Energy Announce Conversion of Bridge Loan

CGX Energy Inc. (TSXV: OYL) and Frontera Energy Corporation (TSX: FEC) announced last week that Frontera has elected to convert the principal amount outstanding (US$8.8 million) under its bridge loan facility due September 30, 2019.

As previously announced, the principal amount outstanding under the bridge loan is convertible at a price of USD $0.22 per share (being the US dollar equivalent of CDN $0.29, which was the closing price of the common shares of CGX prior to the December 4, 2018 announcement of the amendment to the bridge loan).

As a result of conversion of the loan, Frontera will acquire an additional 40,000,000 common shares of CGX (representing approximately 17.23% of the issued and outstanding common shares on a non-diluted basis). Immediately prior to the conversion of the loan, Frontera beneficially owned and/or exercised control or direction over 157,383,129 common shares (representing approximately 67.78% of the issued and outstanding common shares on a non-diluted basis), and if all convertible securities held by Frontera were exercised, 212,392,155 common shares (representing approximately 73.95% of the issued and outstanding common shares on a partially-diluted basis).

Immediately following the conversion of the bridge loan, Frontera will beneficially own and/or exercise control or direction over 197,383,129 common shares (representing approximately 72.51% of the issued and outstanding common shares on a non-diluted basis), and if all convertible securities held by Frontera were exercised, 212,392,155 common shares (representing approximately 73.95% of the issued and outstanding common shares on a partially-diluted basis).

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana- Suriname Basin. Frontera Energy Corporation is a Canadian public company and a explorer and producer of crude oil and natural gas, with operations focused in South America. Frontera has a diversified portfolio of assets with interests in more than 40 exploration and production blocks in Colombia, Peru, Ecuador and Guyana.