CGX Energy Inc V.OYL

Just a question....

[Investnowplease]

What would happen if a major bought CGX.
1) could they bury FEC is drill commitments by proposing numerous wells that FEC doesnt have the pockets for?
2) could they proposed a developement that FEC cannot fund?

I have said may times. This is a big boys game financially. 

just asking

[rhaqq]

if someone wanted to buy oyl they would have to make a offer,  a certain amount per share,and all the share holder would have  to vote on the offer, yes or no.  highest % of yes or no wins.

[Hotshot85]

this would not happen with the size of ownership that FEC has of OYL. 

[Ebenizer3]

silly, if they are being bought out means they are buying all cgx shares including all of fec's stake in cgx

[IceDog13]

1) No... FEC owns CGX, so any funds to buy them would go to FEC. 2) No... if they bought FECs shares of CGX to take control of the company, I they would have plenty of funds to fund any new developements from the sale of those shares. At the end of the day, FEC owns CGX. There is no way for a hostile takeover as FEC owns the majority of the shares. If they do decide to sell them, the proceeds

[Investnowplease]

I would imagine a development of a project this size would be in yhe eange of 4-5B. No way they get that for CGX, then they would lose control of the entire project. This is all very interesting as there is no possible way FEC has the expertice or the cash to develope it. Success brings issues they cannot deal with, if its successful. Sure hope it is. Many questions surrounding that, from what has

[IceDog13]

I think your estimates for this project are to high. Liza 1 was only 3.5 billion, and with the shallower water I would assume the costs would be less, but assuming they are the same FEC would have no problems funding this if they sold CGX. At a small premium to today's price, CGX would sell for a back of the napkin price of $1 billion, $800 million net to FEC. FEC would be on the hook for 33

[Investnowplease]

Perhaps you are correct, however if they sold CGX they then lose control of the investment dollars and future wells and capital associated. Ie they could be put on notice for projects they cannot afford. That with the fact that they would have to lay out likely a Billion and not have any cash back for likely 3 years is a number they cannot swallow for a company there size.  is there a

[Investnowplease]

Perhaps im wrong but my money would be in: monetize this discovery buy out CGX let CGX do the Port and on land thing(power plants , NG pipelines etc) then they could potentially do one on there own or  rinse and repeat with a sale of a discovery.  i own both companies btw and am truly hoping on a discovery.  this is all assuming they where successful.  just my

[waitingstill]

You have to remember it is Catalyst Capital that is controlling FEC and these guys are venture capitalists that buy companies and flip them from their past history. From what one of my friends tells me, their sale of FEC is long overdue so I do no think that they (CC) are in this for the long haul. So, in my mind, they will do what they can to maximize the company in the short term and then get

[YancyDerringer]

Waitingstill you are correct, I agree with your statements. However we are not yet at the end of POST DISCOVERY, we are in the beginning of this period, it is still to come with the results, so yes there will be a share price increase at that time:)YD