RE:RE:RE:RE:RE:RE:Kawa-1. What is a good result?Harel,
I'm curious what you think Chevron and Total paid for Suriname blocks 5 & 6. CGX may take a solid rogering is Kawa is not commercial, but it is not going to .20. Extensive seismic, multiple prospects, future wells, the port, etc, etc. There is lots of valule left if Kawa misses.
As far as FEC vs CGX... If Kawa has oil, the market will value that at X/barrel and CGX stock will rise. We will see how much of that equity is mirrored in FEC stock, but it will not be magically doiubled just because FEC owns the majority of CGX.
Catalyst rebuilt Pacific and took FEC to market at $30/sh in 2016. The only likely path to recovering that investment is through some m/a event or if FEC sells a significant portion of CGX to a major, and perhaps absorbs the rest. (maybe with and increased share of the PPL?)
Your exposure to Kawa maybe somewhat muted by whose stock you hold. In any senario, CGX stock has to increase for anyone to get paid, and if Kawa is commercial, CGX shareholders will be paid the most.
GLTA