RE:RE:RE:CGX / FRONTERA UPDATEGood Lord man; it doesn't matter how much perfume you dump on a heap of shat, it will be shat, just smell like someone shat a perfume bottle and still look like shat.
I wonder how many here have held on due to OIL_RUN's postings?
Terrible outcome for Kawa-1, the well has been plugged and abandoned, which doesn't surprise me since the only news about the well prior to today was they discovered 200 ft of hydrocarbons. The key word has been hydrocarbons, which when used generaly indicates a non-commercial find, especially since there was nothing said about the quality of the hydrocarbons encountered. The absence of information was a glaring red flag - something Eco-Atlantic shareholders can identify with (Jethro & Joe). A bunch of smoke-and-mirrors.
The statement: "200 ft net pay", is very misleading and should not have been used in the news release without further explanation. Also, withholding material information as long as they did, knowing it would have a big impact on the share price, is highly questionable. One could ask; what new and pertinent information did they expect to gain in the last 3/4 weeks that wasn't already known? (were they hoping they might still make a real find?)
FEC:
I sold ~half of my Frontera holdings this morning and will hang on to the rest for now; although their earnings report makes things look good going forward, it was likely just intended to calm todays bad Kawa news. I am surprised CGX isn't under a dollar already - that is where it is headed.
Reality is, Kawa-1 is a bust. I think most of you should still be in the money so consider your options carefully. The shelf will be near worthless until someone makes a commercial find on it, which is why the government extended the Demearera tenement - nobody wants it anyways.
The big question now: how will CGX pay for their share of Kawa-1 and Wei-1? A few days ago I saw some knot-head posting about CGX's book value, there is no book value, the book value is a massive liability/debt (a huge negative number, yes, less than zero). At this point, I would not buy the company for zero dollars/share so why would someone else. It's gonna take some super creative financing to make this work out for CGX.
I hope that some magical something happens to turn this around for all you long-time longs, but just can't see that happening. FEC will be okay, but CGX not so much. Sorry I couldn't be more positive, but that's how I see it - IMHO of course.
Good luck to you all.