RE: Raise in Share PriceThat's correct, no secret there. CGX has stated many times in the past that they would likely have to raise money to drill Corentyne and that will most likely come soon after the JV is announced. However, having said that, according to some analysts, Tullow is going to pay for the 3D seisemic and drill costs for the 1st well on the Georgetown block which they put a value of aprox. $120million ($90 + $30). And that's for a 25% stake.
It's conceivable that CGX may not be required to raise any money for the first well just depending on the terms of the JV. I am however expecting that they will, and it should be at $2+ like the last pp.
If in fact the analysts are correct regarding the Georgetown deal, that puts a value of aprox .85 per cgx share for our 25% stake. If you were to give Corentyne the same value as Georgetown, Corentyne would be worth aprox $3.40. Once the terms of the JV are disclosed, that's when we'll see the true value of this play. I think at these prices we are still way undervalued but the market wants to see the deal before they will commit. $4+
GLTA