Highlights from yesterday's call:
Frontera made it clear on the call - they know what they have in Kawa. Further analysis has been done by the new CGX exploration team and the Kawa prospect (in their view) is one that has been de-risked and represents massive upside. It not only has a Sanonian feature - but, also Campanian as well (similar to the prospects Apache has discovered in Suriname).
As Frontera described, it's a few miles from other discoveries, targeting the same santonian / campanian sands, same source, same (stratigraphic) trap, etc. Very, very encouraging.
Primary and preferred path, however is to seek a third party to join the CGX-Frontera venture. In their view, Kawa is not a frontier exploration well - its a prospect that has already been de-risked via other adjacent world class discoveries just miles away. Very exciting.
Loan to CGX, deed arrangement with Maersk, and funding for the port underscore Frontera's commitment to Guyana and CGX (as the controlling equity holder). Primary path forward is to bring in a JV partner. However, Frontera has full capability to move forward with their drilling campaign in the event.
It appears they have no intention of giving away interest in these assets for a typical exploration well carry. They appear to be seeking terms that validate Kawa as a substantially de-risked prospect with tremendous upside.
Read through - when a JV announcement comes - it will be one that properly values Kawa and it current risk-reward profile. In turn, one that we as long standing shareholders of CGX (including Frontera) will be happy with.