RE: CGX Web Site MISFIT1 - keep up the good work and keep the information coming.
There is no doubt in my mind why CGX is trading below .70 cents. I believe the market would have brushed off dissapointing results from Eagle Shallow - probably bringing CGX's SP to around .70 cents. I further believe the reasons for CGX SP to drop below .70 stems from a lack of confidence with CGX's management and board. Ranked, in order:
1. Lack of professionalism within top management & the board: The press release was a lose - lose scenario for everyone. Both management & the board lost there composure.
2. Financial Reporting: MISFIT1 has done a great job here on uncovering some discrepanices with the amount of cash available to CGX. To be honest - I don't think CGX even knows what there financial position is at this moment.
- Recall, a month ago CGX donated funds for a building in Guayna. This certainly does not sound like a company short on cash.
- On April 30 (as MISFIT1 point out) CGX stated it had funds secured to drill both Eagle Shallow and Jaguar. 15 days later - they need $20M .
- Staging Whaf. CGX putting up $5.4M to build a staging wharf. To me, it would make more sense to first find oil. If no oil - you can forget logisitics.
3. This is not the first issue where the CGX board went off their rocker. It was not long ago some of the board members rewarded themselves (or management at the time) with huge amounts of stock based compensation. I recall there was a pretty big uproar at the AGM when many shareholders protested - unbelievable scene as I was watching it on webcast. The reason why I bring this up is to remind current and new shareholders the CGX board has a questionable past track record.
GOING FORWARD:
- Sell the wharf in Guyana and stop spending shareholders money irresponsibly;
- Remove certain members on the board immediately (i.e. Kerry Sully, Dennis Clement, Adrian Jackson, James Fairbain, and John Cullen);
- Put a member from PRE represented on the board of CGX;
- Put a memberof another major shareholder who owns more than 7% of CGX (aside from PRE) on the board.
- Find a new chairmen for the board. Cannot believe CGX granted this guy 300,000 shares.
- FInd a way to align Tullow's interest with CGX.
Call me a dreamer - but if CGX can implement the above steps we are over .70 in a heartbeat.