Eagle - Shallow TargetSeveral thoughts:
1. It will be interesting to know what the planned total depth for Eagle will be... Specifically, will CGX first well on Corentyne target the lower cretaceous sections ($100M + to drill) or the shallower Tertiary section ($40M to drill).
Its possible leaking news from both Tullow and Inpex wells revealed the shallower targets have significant potential. Hence, bolstering confidence within CGX to go at the shallower targets for their first well independently.
Recall during the most recent Tullow conference call - a follow on appraisal well in French Guiana was already planned within the year called "Bradypus" which lies right next to Zaedyus (see Tullow half-year powerpoint presentation). Well, according to Northern Petroleum (who has a working percentage in the French Guiana block with Tullow) - Bradypus is an shallow Teritary lead.
So, it is interesting to note Tullows second follow up well in French Guiana will focus on the shallower Teritary play.... Long story short - Tullow must have saw something they liked in the Teritary section in French Guiana.
2. Maybe CGX will utilize a part of the funds to move forward with shooting 3D seismic over the Annex block. Without doubt - positive drilling results from Inpex, Jaguar, and / or Eagle will increase the value of CGX's other blocks in Guyana. Especially, the far eastern portion of the Annex block where 2 leads have been mapped with older 2D seismic (see CGXs 2004 presentation: 6km long Toe thrust, 8km Amplitude Lead).
The funds recently raised could allow CGX to advance the Annex block by shooting 3D seismic and start putting together an independent reserve report. I believe Tullow will bring in a vessel to shoot 3D on their block in Suriname. Maybe a good idea for CGX to contract the vessl to shoot 3D seismic on Annex while the vessel is in the region...
At the moment the value of Annex and Pomeroon (Pomeroon which is in the midst of a border dispute with Venezula) is 0. So, CGX moving forward with shooting 3D on Annex is possibly not a bad idea when looking to allocate funds.
3. Rumors are starting to spread about Guyana looking to extend-out Guyana's border with Suriname... It is likely CGX and Guyana have had discussions on this issue. CGX has already mapped out the Wishbone prospect and assigned possible numbers to it... Maybe there is some type of collaboration going on with Guyana and CGX... But this is another area where CGX could allocate its funds.
Without doubt, if Eagle's shallow teritary leads comes in - CGX's other prospect "Wishbone" could be extremely valuable.
In summary, there are many ways in which these newly raised funds could be allocated to further enhance the value of CGX. These funds could enhance shareholder value by:
* Retaining ownership while drilling Jaguar and Eagle;
* Moving forward with evaluating the the prospects on the "Annex block";
* Extending Guyana-Suriname border to tap into Wishbone;