RE:Guyana off shore makes no sense for a company this size drunk@noon wrote: to take on buy itself. They could buy back a third of their shares for what they have blown on these to exploration wells. And think of this, with one third less share o/s your casflow/income and NAV per share increases by 50%. And what is this all for-- a long short chance that after a billion of cap ex they can bring oil to the market 5 years down the road if they are lucky, And who the H knows what the price of oil will be then. That is why this white elephant, high risk, project isn't worth much at all. Sure own 20% of such a project on a flyier, but carrying all costs, with some deadbeat partner----forget it. They and their penniless partner have been looking for a JV for how long now? At this point, if Iwe get lucky and they can sell the second well as a stellar sucess---the best case senario woud be to farm if out to someone and give them 80% of the project for a 20% carried interest. Otherwise cap the well and walk away.
The more shares repurchased, the higher % of the shaes, Catalyst Capital and the other Hedge Fund own. Combined, they already are close to 50%. With Gab de Alba, the Managing director of Cat, Cap, the Chair of FEC and the Co Chair of CGX, don't you think it is the $$ Interests of the Venture Capitalist Hedge fund that will come first? I would not be invested in FEC without the Wei-1 well and the Guyana lease now almost completely controlle by Catalyst Capital. A Hedge fund normally does not get into a resource stock to make it a long term investment. There is no way that Catalyst Capital is going to wait 5 years and invest huge sums to develop the concession. When they purchased controlling interest from PRE, now FEC in 2016, it was with the idea of buying destressed assets, substantially improving the value and then monetizing their investment in a farily short time span. CC already has been sued by a US pension fund for taking too long to monetize the Catalyst Capital LP fund that FEC is embedded in
I am in this stock only for the hope that Wei-1 hits big, in the hottest oil basin in the world and since CGX has controlled the leases for decades, they have the best terms and with Suresh, the Co-Chair being a citizen of Guyana it has helped overcome these constant missed deadlines.
A Big Wei hopefully leads to a big payoff for FEC shareholders, I think the two hedge funds wiould like to sell FEC with CGX as a subsidiary and at that point ( A big Wei) the concession should be worth Billions based on a very sought out location and hopefully that this happens by the end of 2023. If this occurs with CGX a FEC subsidiary, I am unclear what CGX shares would be worth and how CGX share holders are compensated. As like many, I own both.
A recent rumor I heard is that Shell overcame their deep well mechanical issues and is back drilling using the rig CGX, the operator for drilling the Wei, is waiting for. The same rig used for Kawa and it should be released soon. Hopefully drilling can start sooner than later.
Happy Turkey Day for those of us living in total Wacko land. Where we love guns and politicalize everything and seem to hate each other.