RE: RE: RE: RE: RE: Some Basic FactsJennings Capital Inc.
Toronto 416.214.0600 Toll Free: 1.877.214.3303
Calgary 403.292.0970 Toll Free: 1.888.292.0980
Halifax 902.496.7580 Toll Free: 1.800.565.8660
Montreal 514.989.3104
MORNING COMMENT January 7, 2010
PLEASE SEE IMPORTANT DISCLOSURES ON PAGES 7 AND 8.
CGX Energy Inc.1 (TSXV-OYL $1.46) Mkt Cap $184 Million
Recommendation: SPECULATIVE BUY; Target: $2.00
Analyst: Greg Chornoboy
CGX and Partners Enter Second Renewal Period on Georgetown Block
Impact: Positive
This morning, CGX announced that along with its working interest partners, Repsol Exploracion
S.A. (15%), YPF Guyana Limited (30%) and Tullow Guyana BV (30%), it has renewed the
Petroleum Prospecting Licence in the Georgetown block and entered into the Second Renewal
Period.
The Second Renewal Period has a minimum work commitment of one exploration well to be
drilled within the next 18 months.
CGX has re-opened the data room and marketing process to find a farm-in partner for its 100%
owned Corentyne Block. We anticipate that process to conclude in March or April. As the
earning provision for a partner would be to drill one (or more) wells on the block, it is possible or
even likely that there will be news on two wells (Georgetown and Corentyne) late this year or
early next year.
Jennings Capital Inc. Research Disclosures
U.S. Client Disclosures
This research report was prepared by Jennings Capital Inc., a member of the Investment Industry Regulatory
Organization of Canada and the Canadian Investor Protection Fund and a Participating Organization of the Toronto Stock
Exchange and the TSX Venture Exchange. Jennings Capital Inc. is an affiliate of Jennings Capital (USA) Inc. Jennings
Capital (USA) Inc. accepts responsibility for the contents of this research report, subject to the terms and limitations as set
out above. Jennings Capital (USA) Inc. is a registered broker-dealer with the Securities and Exchange Commission and a
member of the National Association of Securities Dealers Inc.
THE FIRM THAT PREPARED THIS REPORT MAY NOT BE SUBJECT TO U.S. RULES WITH REGARD TO THE
PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS.
This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.
Any transaction in these securities by U.S. persons must be effected through either Westminster Securities Corporation, a
U.S. broker-dealer registered with the Securities and Exchange Commission and a member of the National Association of
Securities Dealers Inc. and the New York Stock Exchange Inc. or through Jennings Capital (USA) Inc., A U.S. brokerdealer
registered with the Securities and Exchange Commission and a member of the National Association of Securities
Dealers Inc.
U.S. PERSONS
This research report was prepared by an affiliate of Jennings Capital (USA) Inc. or other person that may not be
registered as a broker-dealer in the United States. The firm that prepared this report may not be subject to U.S. rules
regarding the preparation of research reports and the independence of research analysts.
Subject to the limitations on liability described above, Jennings Capital (USA) Inc. takes responsibility for the content of
this research report in accordance with Rule 15a-6 under the U.S. Securities Exchange Act of 1934, as amended. All
transactions by U.S. persons in securities discussed in this report must be performed through Jennings Capital (USA) Inc.
U.K. Client Disclosures
This research report was prepared by Jennings Capital Inc., a member of the Investment Industry Regulatory
Organization of Canada and the Canadian Investor Protection Fund and a Participating Organization of the Toronto Stock
Exchange and the TSX Venture Exchange.
JENNINGS CAPITAL IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH
REPORTS AND THE INDEPENDENCE OF ANALYSTS.
The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described
in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001.
This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.
Stock Ratings
Speculative Buy: The stock is expected to provide a total return in excess of 10% over the current trading price over thenext 12 months; however, there is material event risk associated with the investment.
Buy: The stock is expected to provide a total return in excess of 10% over the current trading price over the next 12months.
Hold: The stock is expected to provide a total return of 0% to 10% over the current trading price over the next 12 months.
Sell: The stock is expected to provide a negative total return over the next 12 months.
Risk Ratings
Low/Average Risk — Stocks with less volatility than the market as a whole, with solid balance sheets and dependableearnings.
Above Average Risk — Stocks with more volatility than the market. Financial leverage is considerable but notthreatening, earnings are more erratic, or other quality concerns regarding accounting, management track record, and
similar issues.
Speculative — Stocks of unproven companies or ones with very high financial leverage, suspicious accounting, or withother significant quality concerns. A speculative risk rating implies at least the possibility of financial distress leading to a
restructuring.
Distribution Ratings: Out of approximately 69 stocks in the Jennings Capital Inc. coverage universe, the ratingsdistribution is as follows:
Security Abbreviations: NVS (non-voting shares); RVS (restricted voting shares); RS (restricted shares); SVS(subordinate voting shares); MV (multiple voting shares).
Quarterly Recommendation Hierarchy: Is a ranking distribution identifying the percentage of total, number, and theinvestment banking relationship (%) for all recommendation categories that can be found on the Jennings Capital Inc.
website (www.JenningsCapital.com).
Analyst Stock Holdings: Equity Research analysts, associates and members of their households are permitted to investin securities covered by them. No Jennings Capital Inc. analyst, associate or employee involved in the preparation of an
analyst report is permitted to effect a trade in the security of an issuer whereby there is an outstanding recommendation
for a period of 30 calendar days before and 5 calendar days after issuance of the research report
Compensation: The compensation of the analyst and/or associate who prepared this research report is based upon inpart, the overall revenues and profitability of Jennings Capital Inc. Analysts are compensated on a salary and bonus
system. Some factors affecting compensation including the productivity and quality of research, support to institutional,
retail and investment bankers, net revenues to the equity and investment banking revenue as well as compensation levels
for analysts at competing brokerage dealers. Analysts are not directly compensated for specific Investment Banking
transactions.
Jennings Capital Inc. Relationships: Jennings Capital Inc. may receive or seek compensation for investment bankingservices from all issuers under research coverage within the next 3 months.
Jennings Capital Inc. or its officers, employees or affiliates may execute transactions in securities mentioned in this report
that may not be consistent with the report’s conclusions.
Company Specific Disclosure Requirements
1 The Analyst or a member of the Analyst’s household has a financial interest in the securities of thisCompany.
2 Jennings Capital Inc., Jennings Capital (USA) Inc. and/or any of their affiliates has managed or comanagedan offering of securities or has been engaged for a fee by this Company in the last 12 months.
3 The Analyst has had an onsite visit with this Company. (The extent to which the Analyst has viewed thematerial operations of this Company is available on request.)
4 The Analyst has been compensated for travel expenses incurred as a result of an onsite visit with thisCompany.
5 Jennings Capital Inc. or Jennings Capital (USA) Inc. is a market maker for the securities of the subjectissuer.
6 Jennings Capital Inc. or Jennings Capital (USA) Inc. beneficially owns more than 1% of any class ofcommon equity of this Company.
The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is
accurate or complete and it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are
subject to change. Jennings Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in
this report and may buy or sell such securities. This report is not to be construed as an offer to sell or solicitation to buy securities. Member– CIPF. Jennings Capital (USA) Inc. is a member of SIPC.