According to its unaudited financial statements for the period ended June 30, 2020, CGX Resources Inc, reported to the market that it has suffered a net loss totaling US$2,722,585 (($0.01 per share). The company also noted that it has no revenues, so its ability to ensure continuing operations is its ability to obtain necessary financing to complete the acquisition and development of potential oil and gas properties.
In the meantime, it has submitted applications to relinquish 25 percent of its two offshore blocks, Demerara and Corentyne and its one onshore block, Berbice. This would be in accordance with the laws and oil agreements of Guyana which dictate that a certain percentage of the blocks be handed over to the State before the next renewal of a licence can be granted.
CGX said in its report that the Energy Department has officially indicated to it that it sees no material obstacle to a favourable consideration of CGX progressing to the second renewal period in respect of the Corentyne, Demerara, and Berbice licences provided that the relinquishment details necessary for progression into the second renewal period are agreed upon.
CGX is now awaiting the agreement of the Energy Department and GGMC on its applications as well as the final instruments to formally move into the second renewal period of all three Blocks.