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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 Dec 04, 2009 10:54am
713 Views
Post# 16554274

OGX

OGXSully has often used OGX as a comparison.They recently discovered 2 billion barrels offshore Brazil,and their market cap is over $25 billion.They however have $4 billion in cash to fund all exploration.

This article is a little dated before the full 2 billion were discovered,but the following point is very relevant:

"Doubling Share Price

The shares have more than doubled this year on speculation Batista may replicate Petrobras’s success in finding crude off Brazil, site of the largest oilfield discovery in the Americas in the past three decades.

Share values may quadruple once reserves are proven, which should occur in 2010, Mendonca said. This is because estimated oil and gas resources are valued at about $4 a barrel and measured reserves about $15 a barrel, he said. "



https://www.bloomberg.com/apps/news?pid=20601086&sid=aMoznugKg_C0


So if CGX hits,the key is to wait until they move from estimated reserves to proven....takes about 1-2 years. A lot can also happen in taht time :stock splits,takeout etc all would be positive.

But first...they have to find oil,no easy task.



Any other posts/opinions would be welcome.
Bullboard Posts