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Bullboard - Stock Discussion Forum 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... see more

TSXV:OYL - Post Discussion

CGX Energy Inc > WCM - MODEL
View:
Post by OIL_RUN on Jan 01, 2022 10:28am

WCM - MODEL

WCP -


I would suggest updating your model to account for at least comparable pay as those encountered immediately adjacent to the Kawa well location in Block 58 (Maka Central and Kwaskwasi).  These are the closest and direct analogues to CGX's Kawa well.


Maka Central upper santonian = 240ft of pay
Kwaskwasi = 423ft of pay 


Note, during the CGX/Frontera Operational update held in October 2021 - Jennifer Budlong referenced that they are expecting to encounter thicker and coarser santonian based reservoirs then those announced by the block 58 venture group (Apache / Total). That's not only based on CGX/Frontera seismic interpretation of H23 - but, also the geophysical assessment given Kawa's location being immediately adjacent to the mouth of the giant Bernice Canyon feeder system. The berbice canyon feeder system being the source for all sandstone reservoirs deposited in Block 58 as well in the South-Eastern Area of the Stabroek license (Haimara, Pluma, and the broader Turbot area).


H23 or H25 pay (Maka comparable - 240ft):
STOOIP = 7758 * 10,000 * 240 ft * .25 * (1-.30) / 1.2; or, 2.7 billion barrels in place.
Recoverable resource = 2.8 * 25% = ~680mmboe


H23 and H25 pay (Maka comparable - 240ft):
STOOIP = 7758 * 10,000 * 480 ft * .25 * (1-.30) / 1.2; or, 5.4 billion barrels in place.
Recoverable resource = 5.4 * 25% = ~1,350mmboe


H23 or H25 pay (Kwaskwasi comparable - 400ft):
STOOIP = 7758 * 10,000 * 400 ft * .25 * (1-.30) / 1.2; or, 4.5 billion barrels in place.
Recoverable resource = 4.5 * 25% = ~1,100mmboe


H23 and H25 pay (Maka comparable):
STOOIP = 7758 * 10,000 * 800 ft * .25 * (1-.30) / 1.2; or, 9.0 billion barrels in place.
Recoverable resource = 9.0 * 25% = ~2,300mmboe
 

Unfortunately, CGX/Frontera did not reveal specific P10, P50, or P90 figures for Kawa. Nor did they reveal their internal view on Kawa's probability of success.


What they did share was a proximate amplitude area of the campanian, upper Santonian, and lower Santonian features of Kawa. Both upper and lower santonian features (H23 and H25) appear to be larger then the size of two US GoM blocks.



If we generally take the net pay inputs of those direct analogues in Block 58 (Maka and Kwaskwasi) - and incorporate the possibility of stacked reservoirs - you can come up with more a billion barrels of recoverable resource using the model you provided.


Happy New Year - we are close to entering the auspicious year of the Tiger.


Hold on to your chair!

Comment by Phantomblogger on Jan 01, 2022 10:47am
OK Oil_Run, Please give me a target price for the SP. I would prefer a daily price run up for the next two weeks, which is starting from Monday, 03 January, 2022 to Friday closing of 14 January 2022. This is not a criticism of Oil_Run, but the question a savvy CEO of CGX would want, especially if he was negotiating a JV or a SELL. Oil_Run, put all the geology, drilling info (known or unknown) TO A ...more  
Comment by lexxus296111111 on Jan 01, 2022 10:54am
This oil discovery will be massive. No conceivable way this thing doesn't end up as a more than 1 billion barrel find. The extra time and cost is not for fun... this is game changing for CGX.
Comment by OIL_RUN on Jan 01, 2022 12:55pm
Phantomblogger - Most investment analysts (Citi, Bank of America, etc) utilize a $/boe in the ground valuation for exploration based E&P assets. This is based on recoverable resource expectations. See link with use of this methodology: https://www.ecooilandgas.com/wp-content/uploads/2019/03/Eco_Atlantic_Flash_Note_2019.03.19_CPR_H_P.01.pdf I have seen analysts use $4.5/boe to  ...more  
Comment by Phantomblogger on Jan 01, 2022 1:37pm
Thanks Oil_Run! As you already know from my previous posts, my valuation is CAD 20.00 BUT, the last year 2021 revealed a CLASSIC PUMP AND DUMP, climaxing on Dec 15, 2021 at a low valley of dump results. And none of it has to do with this board nor the Stocktwits board. SERIOUS! The best to everyone on this board for 2022!
Comment by CLOUDER on Jan 01, 2022 2:38pm
well,   i would not be surprised if there is a 4th deposit,this is why they are still drilling.THEY  interpreted some thing on the sismic and are seeing about this wile they are there.there is many more prospects in the immediate vicinity so why not?   this is going to rock  like it`s 1999,   duh    dah ,     da,    da  ...more  
Comment by westcanpride on Jan 01, 2022 11:48am
Hi Oil Run, Yes, you are correct that significantly higher pay thicknesses could be used to calculate a rough OOIP, based on offset analogs. With that, in my experience, it is also highly unlikely that the entire net reservoir thickness would encompass the whole 10,000 acres (as provided on the seismic image). If we were dealing with shoreface sandstones, yes, it could easily be argued that there ...more  
Comment by Phantomblogger on Jan 01, 2022 12:02pm
WCP here's what you wrote at the end of your post, "Certainly big numbers in any event." What does this mean? Would you like to have a go at the prices I requested from Oil_Run? What about Taal and Waitingstill? Happy new year 2022 to all on this board!
Comment by gossamer3 on Jan 01, 2022 3:05pm
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