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CGX Energy Inc V.OYL

Alternate Symbol(s):  CGXEF

CGX Energy Inc. is a Canada-based oil and gas exploration company. It is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana. The Company, through one of its subsidiaries, holds an interest in a Petroleum Prospecting Licence (PPL) and related Petroleum Agreement (PA) on the Corentyne block in the Guyana Basin, offshore Guyana. The Company, through its subsidiary Grand Canal Industrial Estates, is constructing the Berbice Deep Water Port. This facility, located on the eastern bank of the Berbice River, adjacent to and north of Crab Island in Region 6, Guyana, is being constructed on 30 acres with 400 m of river frontage. Its subsidiaries include CGX Resources Inc., GCIE Holdings Limited and CGX Energy Management Corp. It is the operator of the Corentyne block and holds a 27.48% working interest. Its Wei-1 exploration well is located west of the Kawa-1 discovery in the northern region of the Corentyne block.


TSXV:OYL - Post by User

Bullboard Posts
Post by simonx72on Sep 19, 2009 9:18am
461 Views
Post# 16320938

Financial partner (very important)

Financial partner (very important)I believe the comment made by Sully of a financial partner (rather than operating partner) being a consideration is very important and I suspect not fully appreciated.There are entitities out there that will fund a project,at low interest rates without equity ownership...ie no share dilution.

So say CGX borrows $100 million for a deep well from OPEC Bank (or similar) ,their shares are not diluted so they retain 100% of the field with the same number of shares (135 million).
If there is a discovery they borrow another $1billion to develop the field.

They now owe 1.1 billion dollars.But if you own 100% of a multibillion barrel field that is worth tens of billions of dollars,that is easliy repayable...and the share price will be exceptional.

I hope this is the route they choose...best return for us
Bullboard Posts