CGX Energy Inc V.OYL

The inside story

[liquorwolf]

CGX's operation is a tangled incestuous mess. Think about it, CGX has no money, it is a beggar. Why aren't they bankrupt by now? Good question. We don't even know how much they really owe FEC. The two blocks that won't be drilled are an indication that FEC knows for certain that the Wei-1 well be a game changer.

But don't forget that FEC will be banking over $800mm this year, maybe more; will see. Their current market cap in USD is $1.05 billion. As we have seen, their stock price has been inching upwards toward the peak achieved when Kawa hit  Oyl's has been turning down. That indicates that CGX is in no condition to pay for further drilling. Therefore, FEC will be their funding source but at a price; which most likely be taking OYL private - leaving CGX shareholders in the leach. 

All comments welcome. I do not intend to bash. I hold FEC for it will see $25 plus.

[ljmorin]

LW, I know it might be hard to believe but CGX has been in much much worse finanial condition and survived. A few times actually.  Your missing the history portion of the CGX story here is all. lj

[liquorwolf]

Please explain the price action on CGX. Appears it went zoom to boom I believe this is related to the incestuous relationship with FEC, but also the Government of Guyana. Past history is irrelevant as far as I am concerned. CGX has their hand out and FEC coughs up the funds. If you take FEC's total interest in the Corentyne block, FEC's net is 85%. But I would bet that FEC will make an

[RightAngle45]

Liquor Wolf You forgot the biggest and most important piece of the puzzle. Its called the guyanese goverment. They have kept CGX alive up til now and they will continue to do so.. In my opinion CGX one day will be guyana's national oil company. 

[Beaner1814]

LW, your question as to why CGX is not insolvent (as bankruptcy requires the relevant proceedings to be declared such) requires you to first look to the most recent financial audit and take into consideration, from the Canadian side, whether  "the aggregate of [CGX's] property is not, at a fair valuation, sufficient, or, if disposed of at a fairly conducted sale under legal