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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
Comment by STVPon Nov 25, 2011 8:16pm
305 Views
Post# 19268914

RE: RE: Two Very Important Questions:

RE: RE: Two Very Important Questions:

If I understand you correctly deepthink, "As for why CGX had that huge private placement, it is obvious that they had to, and it was priced as high as they could. They had to do the PP because if they fail to get a well spud by the New Year they are at risk of losing the Corentyne PPL"

They need to spud a well before year end -- I can't see how that's possible given we have one month left and they haven't even contract a Rig as yet.

The PP was priced as high as they could -- definitely don't agree with this statement considering where the stock was trading before the halt and after the halt.

Again, a strategic partnership would have made much more sense to me than just raising more money so quickly after Tullow discovery -- surely you would have expected more attention in the basin after Tullow's discovery and seeing your stock heading over 90 cents, why issue equity at 70 cents? They could have issued equity to a strategic partner at higher price before year end and that strategic partner would have gotten them a Rig faster, provide technical team, etc.

Also, if TSX did indeed halt the stock and ask CGX to issue a news release (after Tullow discovery) about how high risk their future exploration will be -- was people at TSX sending a message that there's still really high risk with their upcoming operations? Otherwise, why did the TSX halt the stock? Many stocks move up and down by huge % amount, why don't they halt those stocks as well?

Bullboard Posts