Presentation and JVHermeston's presentation was interesting. What really got my attention was his claim that with the enhanced interest in the area, CGX is now expecting to be able to finalize a JV before spudding Eagle Shallow. The purpose of the JV is to finance them to drill Eagle Deep and their Albian plays. Since it is my understanding that they are working on arranging a rig for Eagle Shallow within the next couple of months, the implication is that they are predicting a JV also before then. Obviously it would be really helpful to have Inpex report positive results soon so that they can make a good deal in the JV. However, this does mean that there is now an additional opportunity for action on this company: within three months, we can now anticipate:
1. announcement from Inpex
2. JV
3. announcement and spudding of Eagle Shallow
4. spudding of Jaguar.
To fund Eagle Deep and an Albian drilling, we are looking at at least a $250 million commitment, which would imply that CGX would be giving up at least a 50% share of the wells.
By the way, I am pretty amazed at the way the whole executive team has changed.