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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 kaosblueson Jul 17, 2012 8:32am
456 Views
Post# 20120534

RE: THOUGHTS - AWAIT CLARIFICATIONS

RE: THOUGHTS - AWAIT CLARIFICATIONS

Oil Run: 

     You have made a very good and cogent argument regarding why they have not released more information regarding the magnitude of the light oil finds. If these results were poor and non-commercial one would expect that they would be under a duty of care to relate that information immediately.  Perhaps I am a blind optimist but to my way of thinking it points to the fact that this may be a commercial find. While one could maintain that if this were true they would be under a duty of care to relate that information as well, that argument is not quite correct. This is because other events namely the expiration of the rights to the Georgetown block can be viewed as a superseding event which may materially alter the duty to report a possible commercial find.  It is potentially a perverse situation in that reporting such a find might adversely affect the rights of shareholders at this particular point in time.   I believe their is a lot of case law on this subject which supports the contention that they are completely justified in keeping mum on the subject until the results of the negotiations over the rights to the block are concluded.  I also believe we should be thinking more along the lines that finding more oil at greater depth may simply be a future possible bonus. In other words concentrate on the two birds in your hand not the big potential albatross in the bush.

     I suspect that we are going to see a huge rebound in the SP over the next week while this possibility slowly filters down through investors thought processes and pressure is brought to bear on the operators to release more information. They will probably only do so once they have renegotiated the concession rights, but which may not take nearly as long as many might think. 

     I will be throwing everything I can into this play in what I perceive is a reasonable gamble that they have hit much bigger than many are presently thinking.  If such analysis is correct  then the next week or two will almost certainly be the last chance to get in cheap before the real & solid appreciation starts.  Just imagine how cheap 30 cents might look within a couple of months, if once they tie up the concession rights, they come out with some really positive concrete information regarding these light oil finds. 

Bullboard Posts