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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 Feb 05, 2022 6:13pm
378 Views
Post# 34401497

RE:RE:Company valuations

RE:RE:Company valuations

JS4900 -
 

A large E&P or super-major will not want the Colombian onshore exposure IMO. Outside of the shifting landscape in Colombia, the break-even for these onshore fields are around $50/bbl and require extensive capex to keep them producing.

 

As we heard of the Exxon earnings call and other large E&Ps who have reported earnings - they are re-focusing their efforts towards value over volumes. At the center of their strategy is lowering their overall company breakevens.


In my opinion, CGX Energy's offshore licenses meets this unique criteria (i.e regarded as industries lowest breakevens). They are also in the unique position to negotiate operatorship - which (again) is what the larger E&P / super majors are after.


If posing the question: what would a large E&P or super major acquire with continued rising oil prices? - I can't see Colombian onshore assets and associated Colombian infrastructure being on their list of priorities.


Just my two cents...





 

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