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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

Comment by OIL_RUNon Sep 27, 2021 2:52pm
318 Views
Post# 33925024

RE:For OIL_RUN

RE:For OIL_RUN

Nothing material to add.


Most recent press release states Kawa campaign comprises five planned casing strings - which underscores the simplicity of drilling these wells as compared to the US GoM. In comparison, Hess's Stampede project in the US GOM was seven or eight given complexities drilling through salt and tar.


Frontera has made a clear decision to maintain (possibly increase their interest in Kawa given rights offering announcement made on Friday. They have forgone their option to farm out interest until they first see Kawa well data - knowing a farm out post discovery represents a materially higher reward. 



Yes, there is risk! However, the data CGX and Frontera have access to (much of which has not yet been disclosed) gives them confidence to proceed on their own. ~10k ft drilled to date and TD is ~22k ft.


In deepwater, you don't drill wells like these and hold onto +75% economic interest unless you darn well know you got the next best thing to a commercial discovery (I.e. high chance of success). 



Is Frontera/CGX out of their mind? Or, do they know something we don't?




 

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