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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

Post by westcanprideon Apr 01, 2021 1:22pm
279 Views
Post# 32923730

I do not think a JV will happen

I do not think a JV will happenBased on all the recent hires from CGX (as pointed out by OilRun and looking at LinkedIn), a company with a future minority interest in any offshore well would not be making these moves. CGX now has multiple drilling engineers, exploration managers, pore pressure specialists, etc (in addition to the genius help of guys like Suresh!). Plus, they can always outsource a wellsite geologist to work alongside the drilling crew offshore (95% of which is always associated with the drilling rig and not sourced via company staff). 

Those moves imply to me they are going to probably remain "operator" of the upcoming two wells. Frontera will also provide expertise no doubt, but I think this well is CGX's to drill now. I just do not see any large IOC/NOC taking majority interest in these land bases and not wanting to drill the well themself (imagine Exxon or Chevron acting as a 50% majority partner and allowing CGX to drill as operator... would NEVER happen. Even in a 15% minority I doubt that would happen).  

Its already April 1... close to 8 months since Frontera first released their exciting news about the offshore land. We know the resource report was completed in October (even though not released till February). If any external company wanted into this play, it would have happened already. I think the recent hires and staffing upgrades suggest CGX/Frontera will go at this Kawa-1 well alone. Could I be wrong... sure. But it does not take that long for external companies to do their own internal analysis and compare their OOIP/GIIP to CGX and come to a deal. Unless of course CGX/Frontera do not like the terms of agreement being proposed.

Anyway, if this path continues... how will Frontera feel about paying for like 90% of the well costs? Suppose we will have to hear soon enough. 

Happy Easter! 

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