RE:RE:RE:RE:RE:I'd like to direct this to Shedrills...Thank you for the replies SheDrills. I can see your reasoning.
I think the whole debate around Frontera/CGX and respective share prices were just summed up in your last two posts as well.
Like you post out loud, how does Frontera levarage this opportunity? As most know, a FID is sorely needed before any work into drilling production/injector wells can occur... as we can see from Exxon JV, these projects well exceed $5 Billion USD. Many are now exceededing $10B USD!
Only way to get to a FID is to drill additional appraisal wells upon oil exploraiton discoveries...something that is at least 3-5 years away realistically in Corentyne (provided this JV team started doing more than 1 well programs per year). Does Frontera (especially Catalyst Capital) really want to keep pumping ~$100MM USD into new appraisal wells to get to a eventual FID? I highly doubt it.
This right here is the big uknown to me, and likely many other investors looking at Frontera. CGX is a spec play and is traded as such. Big risk, but big potential pay day.
Frontera on the other hand... they do not have a fraction of the money needed to continue playing a big boy game offshore Guyana before FID is ever made, let alone thereafter. I guarantee other companies looking at doing a JV are playing extreme hard ball with De Alba et al. Like seriously, what would Frontera bring to the table long term in terms of both technical expertise and more importantly financial backing? To me at least, that is why Frontera languishes hard from a market cap perspective. Way to many unknows and big future CAPEX costs if they continue to go about Guyana alone. Something will give eventually...