RE: RE: OGX“Extrapolating, if CGX retains 30% of 1B barrels, CGX will be worth 10$ on the finding, and $40 once measured.”
That’s if they do not have to issue any shares down the road. The reality is that they will to fully appraise any find. 2-3 wells do not appraise a 500 mmboe prospect. It takes a lot more wells than that. So if the farm-in is for say 2-3 wells fully carried then CGX will have dilution going forward. Especially when it comes do the development side where huge $ will be needed and based on your %WI example CGX would be on the hook for 30% of that, if they ever got to that stage.