CGX Energy Inc V.OYL

FEC OPTIONS ON CGX

[liquorwolf]

As of now we can optimistically estimate the cost of the Kawa-1 drilling to be in the neighborhood of $130mm. This does not bode well for CGX. They are out of funds. FEC is funding the well by loaning CGX cold cash. With the overage mounting I expect FEC to exchange their funding of CGX's share by an exchange of shares. We don't know what that will be, but after all is said and done, expect FEC to own upwards of 90% of CGX. What does this mean to the CGX's share price? If history provides a lesson, CGX shares could languish for years to come at some unknown price, most likely lower than it is now or FEC can offer a meager share % of FEC or a below market offer. FEC is in total command here. And don't forget FEC has $300 to $500 million in cash flow. Currently they are raking in cash at $85 a barrel. But I expect a billion dollar barrel find. This will help CGX.

All comments welcome.

[chulo123]

Before some news about KAWA results it should be a NR of how CGX will pay to FEC the money. So, FEC could got more and cheaper shares..  As a result Fec will own CGX more than 90%, and they will crush our positions. As I think this will happen I sold some  CGX shares and take FEC. 50% /50% Personally I feel better. I want to clear up that I am a CGX fallower since 2010 and after all this

[Nergy]

Seems like we're all agree on the matter that CGX needs to update the market about how to serve it's finacial obligations towards FEC due to the pretty large cost overrun for the current drilling program...