the arab - idiot - DrOwen79,
"there's a reason why this is dragging."
There is nothing wrong with the company. They are working on getting a larger company to farm-in on CGX's offshore real estate. That takes time and the lack of any news has taken the steam out of the stock as some traders left looking for the next short-term story to make a killing on after they cashed out their winnings on this name.
The SP rose too far and too fast after they got their seal of approval on the offshore boundary issues with Suriname. I said then that this company isn’t worth $600 million ($5.00 SP) in market cap just for the right to drill a prospect. No company goes for anything near that amount anywhere in the world so CGX should be no different.
Now when they announce the farm-in deal it will be seen if any small financing is needed on CGX’s part as these wells are $65 million each to drill and complete.
After that they need to get a rig and actually drill their prospects.
If it works out and they can successfully delineate an oil/gas field then the shares go to the moon. If not then it falls flat on its face. It’s the same for ENG and any other energy exploration company that does not have any reserves to back up its SP.
CGX drills sometime in 2009 and that is when we will know if we have a real company worth far more than now or one that is far less than now. If you want fireworks that is when it will happen. Until then CGX is taking the necessary steps to get that 1st well drilled. Nothing wrong with that as it needs to be done.
With oil at $100 bucks and the final realization that CGX wasn’t going to drill right away money is flowing out of this stock and into other energy names. Nothing wrong with that, most people today are not patient investors.