RE:RE:CGX VALUATIONAnother way to perhaps qualitatively outline the potential valuation of CGX.
It's very possible the vast majority of Frontera's future valuation will largely be based on their investment in CGX. At this time Fronter'a 2P evalaution (proved and probable) stands at 154MMboe. I would speculate (or argue) there are at least 10 prospects across the Corentyne and Demerara blocks - whereby each prospect (on average) would be greater (in terms of recoverable resource) than all of Frontera's present assets base onshore Colombia and Peru.
In addition, I would also argue theose 10 or so prospects across the Demerara and Corentyne Blocks have far superior economics compared to Frontera's resources onshore Colomba and Peru.
I further speculate Frontera is estatic in their CGX investment. This type of opportunity does not come by all that often - extremly rare. How often do you see industry discovering this much resource with superior reservoir characterisitics, all of which can be drilled and produced at an extremly low cost profile? As Hess said earlier in the year, their assets offshore Guyana are the most attractive in industry.
I would speculate Frontera (whose market cap stands at ~$1B USD) could view their investment in CGX as potentially increasing their company's future valaution by 2 to 3 billion USD over the next 5 years.
Note, this is just my humble opinion...