CGX Energy Inc V.OYL

Re re loan terms

[taal]

Beaner thank you for your post...Im trying to get the gist of your post...please correct if I'm wrong...Are you suggesting that the reason for the extension may be that OSC may be investigating the amended agreement with regard to protecting minority shareholders in regards to the conversion price ...whether it was fair in lieu of Fronterra having more info on hand than the minority shareholders...Agiain I'm just curious Why Fronterra would have extended the payback of the loan by Over a year....

[Beaner1814]

As the original release made reference to MI 61-101 and given what is expressed in the Exchanges policies regarding special transactions that affect minority shareholders, especially those between related parties, I would say it is likely that the Exchange is examining (not necessarily investigating) the merits of the application to exclude minority approval for the loan (if they are still relying

[waitingstill]

Thanks Beaner. Very informative and makes sense to me now.

[westcanpride]

Great posts Beaner!  Suppose the one question I have... what do you think Frontera will do in their next loan to CGX this summer/early fall to allow CGX to fund their portion of Wei-1? Yes, this assumes no new JV deal is inked before Wei-1 spud (a very plausable scenario also at this time). Does Frontera low ball CGX again and offer the money at a loan conversion in the range of ~ $1.4-1.7

[Schreibzey]

Thanks Beaner. To your question/comment WCP, what is the point of this language is in the NR: "A standby fee of 2% per annum multiplied by the daily average amount of unused commitment under the Loan in excess of U.S. $19 million shall be payable quarterly in arrears by CGX, on the last business day of each fiscal quarter, during the drawdown period." What's the point of putting

[westcanpride]

I think we know what it means Schreibzey.... Frontera is now acting like a loan shark. They want to destroy CGX as a company financially and pick up remaining assets for dirt cheap. That $35MM USD loan was to pay for the remaining costs of Kawa-1 (since it went WAY over-budget), keep to port construction alive and to help pay for the basic G&A for 1H 2022. Another massive loan will be needed,

[soulfire]

WCP, put this in an email and send it to Frontera if you mean business.

[Schreibzey]

Right, my point is that the threshold for money not being spent on that loan is $19M, so the way I understand it, OYL needs to spend $16M before that 2% fee kicks in. Not a huge deal, but there is a reason they put it in there. They would know what they need for Wei-1, or other immediate expenses. If only $16M at 33% share, that means total expense is $48M. We know Wei-1 itself is more than that.

[soulfire]

WCP did you send it? Com'n muster up some courage, it's just an email they can't (Will Smith) you LOL

[westcanpride]

hahaha Soulfire! Fair point.  For what it is worth, I have sent CGX stuff before and never recieved anything of value in return (if anything... many ghosted emails with no replies). I highly doubt me sending Frontera anything (especially as a non-shareholder) will yield anything.  If these two companies know who is running the show (i.e., Frontera/Catalyst), why will they care what pi

[jtdd]

WCP, Brent Anderson is the IR guy for Frontera, I emailed him at [e-mail] and he replied.

[westcanpride]

Interesting. Thanks for the email address.  Perhaps more importantly (instead of just being mad at the current share price, as per my messages this morning), I should email him and ask why its taking so bloody long to release the results on the remaining 8 chip cutting samples being analzyed for hydrocarbon content. If they were able to get a fairly quick answer on the Santonian interval (4

[soulfire]

Thanks Beaner. I sincerely hope that Suresh is reading your post and finally realise that FEC is not the only source of funds out there. Suresh has sold us out to maintain his salary IMO. I wish I had his email or any other contact info.

[Devanand1]

i have stated before and I will repeat it here again. This company needs to be led by an experienced oil person and a person with some knowledge of raising capital.Suresh is not the right person to lead this company at this point in time. Suresh idea of raising capital is by making a phone call to Frontera. I have  nothing against Suresh as I don't know the man but his style of keeping

[simonx72]

I agree with Dev's post. To strike a deal in the multibillion dollar oil world, who you know and your O&G credibility are key - which also means you have to be part of the club. Unfortunately Suresh, as intelligent as he may be, does not meet these criteria

[soulfire]

Dev I hear ya. Suresh should be refunding part of his salary for poor performance. I have said this on numerous occasions, he is being used by Frontera they know he has no experience why else is he there?