Post by
YancyDerringer on May 11, 2022 11:28am
# Unanswered Questions
I have been invested in CGX since 1998. They have tremendous political capital. That's why they survived. There are 3 unanswered questions from the recent presentation. Which company is going to JV or get a farmout with CGX? Why would they not state this is a commercial find? What are the estimated oil/gas reserves found? When you have a find, such as this, with 228 feet of oil sands etc, generally you would see a reserve estimate of approximately 300-500 million barrels of oil ,etc. Prior to Kawa success, CGX concessions was worth,in my opinion, $2-3 Billion US, considering the immediate region's success and proven finds. Once Kawa was proven a success, that estimate,in my opinion is $6-7 Billion US. Hell, Apache got $7.5 Billion from Total on the first successful well. So what is Frontera up to? In their presentation they eluded to not answering what the potential reserves are in Kawa even after drilling Wei ! I have seen over the years keeping the information close to the vest, so to speak, but this takes that saying to a whole new level ! So, I think from what Frontera has placed in writing regarding the monies lent to CGX when they cannot pay they will buy shares at $2.40 US tells it all. They most likely will buy out the remaining shareholders at or about that price. Getting a $6 Billion concession for a total of about $400 hundred million US. If they were to do a JV they would have to disclose to the potential partner what the reserve estimates are and once we know what the contribution is by the new partner we would be able to figure out approximately the reserves. So they don't want anyone to know, they don't want the effects to their consolidated balance sheet/ income statements fluctuating wildly with a 75% stake in CGX. I am not sure how they can make the minority shareholders an offer to buy us out with out knowing the potential value of the reserves. So only time will tell and we will see what they do since they really don't tell us anything and this keeps the price surpressed.YD
Comment by
Miftee9 on May 11, 2022 2:06pm
Why cant the share price be where it is because of the overall general market? How many stocks are green over the last 10 days?
Comment by
YancyDerringer on May 11, 2022 3:29pm
Dirksidetrack, your right the market is reacting to what is not been said. They are hedging too much in the presentation and laying off answers to when they drill Wei, maybe they will comment on estimates of reserves then,etc. Complete BS. They want to see what, is it economical to pump these sand layers only after they see the other well results?Nonsense! :)YD
Comment by
CLOUDER on May 12, 2022 8:57am
YAH, with red everywere in the market unanswered questions are a female dog don`t yah know. well i suppose when they get drilling in august they in 6 months or so after that will be figuering out another 70 meters or so of stuff to. so hang on we will get there. don`t yah know.