CGX Energy Inc V.OYL

No imminent JV

[westcanpride]

Given Frontera and CGX are doing a online presentation this upcoming Monday, I think its pretty clear no JV is on the immediate horizon. If anything, both management teams are likely hoping to broadcast their Kawa-1 results/upcoming Wei-1 well to as many external IOC/NOC companies as possible in hopes someone wants to join along that has not shown interest to date.

End of day, the Corentyne block still likely needs ~$1B USD in new spending (3-4 new exploration wells, 3-5 appraisal wells) before any meaningful FID is made.... look at Exxon and Apache as comparables for how exploration and appraisal drilling is conducted before massive (>$5B USD) investment decisions are made.

Now go look at Frontera 2022 CAPEX... as a company, they are only expected to spend $340-395 MM USD for the entire porfolio (~30% of which is attributed to Wei-1). At this pace, it would take bloody close to 10yrs for Frontera to fund a proper exploration-appraisal program in Corentyne. 

So yeah, least on Monday we will get a update on the final Kawa-1 results... hopefully more oil than gas/gas condensate is reported over the 200ft net pay. But other than that, they can brag all day long about Wei-1 and the geological upside/'golden lane' potential and show how wonderful they are to the investment community. When boiled down, however, the hard truth is that Frontera knows it is desperate for a new JV parnter to inject real cash into Corentyne to take it to that next level. Why they haven't been able to ink that JV yet, who knows. We could all speculate until we are blue in the face.

[soulfire]

WCP you are your own worst enemy. Why even post that today? Please....do not feel compelled to POST!!!

[westcanpride]

If you truly think my post, Soulfire, is going to result in people selling out of CGX before Monday morning, then wow. Heck, there are enough folks on various message boards that are 100% super positive about CGX, god forbid someone posts something different.  In fact, if your super bullish on CGX and this upcoming online presentation, go ahead and buy more shares today! According to many

[soulfire]

Just saying why today? couldn't you wait until Tuesday? For your information, all of the longs I have spoken to are not selling so that leaves short term investors. They are the ones making the market in days like this. Your post could have an effect on the SP.

[Miftee9]

WCP, they just got the final results of their drill.  How long do you think it takes to ink a JV worth hundreds of millions of $?  A week? 10 days?  These are massive decisions that need the approval of many people within an organization before they can even put in an offer, then negotiate a deal and then paper it.  Your expectations are unrealistic.  You say you only have

[westcanpride]

In theory, you are correct Miftee. In saying this, if you go back to August 2020, CGX/Frontera have been talking about 'Strategic alternatives' to fund drilling in Corentyne and Demerrera. We are rapidly approaching two years already.  To be completely honest, I do think many companies have probably entered the virtual data room over the past two years. They probably also did

[Sevosevo]

WCP profits from the sale of CGX shares , whle bashing the comapny at every opportunity. Always sees the glass as half empty. Don't want to hand aroung him. 

[Schreibzey]

Few important items to add fuel to the fire, contrary to WCP at the moment: 1. Direct quote on APA earnings call recently, “we didn’t expect that Sapakara would have to be a restricted flow test”. 2. https://oilnow.gy/featured/3-d-seismic-operations-continue-offshore-guyana/ https://www.offshore-technology.com/news/chevron-stake-block-5-suriname/ Context: the word ingress. Looks awfully close

[RightAngle45]

It would be  welcoming to here from oil_run and get his take on whats going on here. Hopefully he still has a chair at the dance and there are great things to come , in the not too distant future..

[Sevosevo]

Did some legs fell off OIL-Run chair? Just asking?

[Miftee9]

Two things WCP, Concrete information and results only provided in last few weeks and even then we do not know the lab results so technically neither should any of the possible partners.  However, it is likely they have showed some results although I do not know if that would put them offside with the exchange.   Secondly, as I have mentioned before, competitive tension in the

[waitingstill]

It is possible to hold and share information as long as nobody trades on it. Thus, signing of NDAs should allow sharing of information. I understand a JV process is usually quite protracted and given final results are likely just returned in past couple weeks, it is way too optimistic to think JVs should be conpleted just yet. Patience grasshopper.