FEC is making new highsFEC is at the high for the year. The street knows what they got, a WHALE. Matter of fact they have three Whales. Columbia-Ecuador is a money stream, Guyana is going to be their 2nd Whale and their 3rd Whale is CGX. Note that CGX is not making new highs, but swimming close to $3 lower after the initial Kawa-1 pop.
One has to ask why this is the case? My take on this is because CGX is dead broke, out of money. So what is their future? Will FEC buy the rest of the shares? I believe they will, but don't count on a windfall. That is what the street is saying. And after they own them, FEC will go the JV route. WEI -1 will cost $120mm targeting the Santonian, I expect this to be an Elephant. As for the timing of FEC taking CGX out , my guess is by the end of July.
All comments welcome. Please be civil. I am not bashing CGX. This is just my opinion.