PESCOD LETTER & IMPLIED ASSUMPTIONS Would believe the recent spike in volatility (7M shares over the past 2 days) and share price increase of 30% over the past 2 days (which reached a high of 1.28; 50% increase) does not just happen out of the blue.
Read through the Pescod letter and would agree with those comments: "somebody, somewhere knows what's going on." Interestingly, the Pescod letter points to Jaguar as possibly having found something in one of its "first zones" - or at least that's what they are assuming. This is interesting...as I am assuming the Pescod letter is making reference to the Maastrichtian.
Not trying to get carried away here, but - what type of impact would a discovery in the Maastrichtian at Jaguar have on the basin - and more particularly CGX? I would tend to believe it would be huge. First, a maastrichtian discovery (at either Jaguar or Eagle Shallow) should de-risk the other Maastrichtian targets that have been mapped - including CGX's Eagle Shallow well.
Recall Jaguar is drilling up-dip relative to Eagle Shallow. Further, Jaguar commenced drilling a week before Eagle Shallow. In addition, we know CGX has experienced delays drilling Eagle Shallow (due to weather and mechanical). Hence, it is possible Jaguar could be the first well to drill through the Maastrichtian with Eagle Shallow right behind it.
What about the deeper Turonian and Campanian prospects? Is it possible a discovery in the Maastrichtian could de-risk (to some degree) the deeper (and larger) cretacous aged prospects / leads (i.e. campanian, turonian, etc.). There is a common denominator here - the creteacous aged sands (Maastrichtian, Campanian, and Turonian) rely on the same source rock, an effective migration route, and trap (stratigraphic trap).
I like what Charlotte said on May 5 "operations are still ongoing". While this may be true - however, it seems something is brewing - and I like the direction its going....
GLTA - and put your trust in Tullow.... I mean CGX : )