CGX Energy Inc V.OYL

Re Ai Algorithm predictions

[taal]

Yes Maka had 400 ft of pay... With Kawa being over 10.000 acres in size ...could any of our knowledgeable posters confirm prediction that every 100 ft of pay at Kawa represents roughly 450 Million barrels ......Glta

[westcanpride]

Hi Taal, Oil in place, at a very high-level, is calculated using the following variables:  A= area, acre h = reservoir thickness, ft = rock porosity, % Swc =connate water saturation, % Boi = oil formation volume factor, rb/stb For Kawa, let's calculate, using 100 ft of net pay and making asumptions for the other variables. 7758= acre-ft to bbl conversion factor A= 10,173

[waitingstill]

So is the potential 3.2 billion barrels of C block the oil in place or the recoverable. And is the usual estimate for value of $5-8/barrel for oil in place or recoverable?

[waitingstill]

Actually this does not matter to us at all anyhow. The purpose of this drill is to find oil and sufficient information to land a massive JV. It is irrelevant whether it is 300mil or 1bil barrels in my opinion. As long as it is commercial and good quality oil, it is going to do the trick for us. It is going to deirsk a huge about of the concession and likely lead to a great JV that will put us on

[Hooray]

WS do you think it is irrelevant whether it is 300M or 1B. Well, 1B will definitely determine the input from the JV or maybe the price of a possible buyout. Just a question but would you prefer a JV where the stock price is determined by market forces where all the longs are heading to the exit at the same time driving the price down or a buyout where the price per share is predetermined

[lexxus296111111]

I prefer a buyout at the predetermined price. Like you said, the longs will prevent the share price from going as far as it could. They will all be selling along the way up. Our potential is tied to the longs. Hopefully they're not so desperate to get out.

[waitingstill]

Hooray, don't get me wrong. I clearly much prefer 1 billion over 300 million if we so fortunate to have a great find. My point was that the primary objective is to prove the system is full and sign a JV like Total gave to Apache worth billions of dollars. Part of that JV value will be on this hole but my understanding is that typically an appraisal hole will be needed to clarify how much oil