RE:Frontera CEO comment on Guyana Dropthegloves - great post regarding Q2 earnings call commentary by Frontera's CEO Richard Herbert.
These comments were made on August 2 (about 10 days prior to Jethro discovery announcement and 40 days prior to Joe discovery announcement).
Post Joe and Jethro discovery - I would expect further enthusiasm and commitment out of Frontera regarding their ~73% stake in CGX and 33% interest in the Corentyne and Demerara licenses.
I am sure the same goes for CGX's other large shareholders CNPC (assuming they are still hold an equity position in CGX) along with Farallon Capital (who manages $25B worth of assets). Expect aligned interest among all shareholders and CGX management to move forward in a manner that would maximize shareholder value.
In terms of other basin activity - all eyes are on Apache (Suriname) - their current exploration well is located ~5 miles from Guyana's maritime border and CGX's northern Corentyne area.
In addition, expect Repsol to SPUD Carapa sometime in October (per Tullow's recent investor presentation). A play opener targeting the shallow water / shelf Cretaceous play. Tullow conveyed to Jeffries earlier this month they had to drill Carapa - part of Exxon's Liza feeder channel system.
Many other known near term catalysts to look forward to:
- additional insight into Exxon's follow up exploration and appraisal program for Pluma, Haimara;
- Apache extending Suriname exploration campaign (now committed to drill an additional 2 exploration wells with the Noble Sam Croft);
- Eco-Atlantic updated CPR report and additional information surrounding the prospectivity of the upper tertiary and Pliocene play on the Orinduik license;
- Details surrounding Tullow's 2020 drill program.
As the basin continues being de-risked, new play types are proven, additional / new oil discoveries are announced (some just miles for CGX's licenses) - the more valuable this investment in CGX becomes. The longer prospective joint venture partners and prospective CGX shareholders stay on the sidelines - the more they will pay!
According to many investment analysts - the licenses that surround us are worth billions of dollars (example: Orinduik valued at $3.333B).
Valuation here is set to go higher - just have to stay patient and let the chips fall where they may. This is the hottest and most prolific basin in the word right now - we have a front row seat.