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CGX Energy Inc V.OYL

Alternate Symbol(s):  CGXEF

CGX Energy Inc. is a Canada-based oil and gas exploration company. The Company is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in the Berbice, Guyana. The Company holds interests in three petrol prospecting licenses, such as Corentyne, Berbice, and Demerara Blocks in the Guyana Basin. The Company has drilled two operated exploration wells on its offshore Corentyne Block and drilled three more exploration wells on its onshore Berbice Block. In addition, it has acquired and processed over 7,000 square kilometers of three-dimensional (3D) seismic data on its offshore licenses. The Company through its wholly owned subsidiary, Grand Canal Industrial Estates Inc. The Company is engaged in the development of the Berbice Deep Water Port in Region 6, Guyana. Its other subsidiaries include CGX Resources Inc., ON Energy Inc., and others.


TSXV:OYL - Post by User

Bullboard Posts
Post by OIL_RUNon Jan 09, 2020 4:58pm
196 Views
Post# 30536356

FRONTERA INVESTMENT IN CGX TO DATE

FRONTERA INVESTMENT IN CGX TO DATEFrom what I have gathered on SEDI - Frontera's overall investment in CGX is outlined below:


Shares Purchased: 197,383,129 @ ave price of $0.72 CAD = $142,724,611
Warrants Outsanding: 15,009,026 @ $0.415 CAD = $6,228,746
33% Farm In: ~$43,956,000 CAD (or US $33.3M)


Frontera's Break-even (including warrants): ~$0.70 CAD.


Total investment by Frontera (including 33% farm-in): $182,253,356.85 CAD


I would suspect Frontera to start harvesting their investment in CGX Energy sometime in early 2020 with the intent of bringing in a joint venture partner that will carry a higher proportion of future exploration, appraisal and development costs. Something comparable to what we have seen with the Apache/Total deal. 


Seems this was hinted at in the news release this morning...


Stay patient - things are coming together. Front row seat to the hottest basin in the world. The Northern Corentyne may perhaps be the crown jewel of the Berbice canyon feeder system.


Make those big money managers that have stayed on the sidelines pay! Another day of limited volume - does not take much to move the share price upwards (it would seem)...


It won't be long before CGX climbs over $1 a share. We will look back at this moment and question how in the world this stock ever traded below $1. A story for the grandchildren...
Bullboard Posts