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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
Post by OIL_RUNon Oct 02, 2012 2:56am
710 Views
Post# 20436224

OCT-1-2012: NEW CGX PRESENTATION

OCT-1-2012: NEW CGX PRESENTATION

New Presentation has been posted on the CGX website.. https://www.cgxenergy.ca/cmsAssets/docs/presentations/CGX%20Presentation%20-%20October%202012.pdf

Interesting to note slide 8, Jaguar-2 - the Campanian has been emphasized / prioritized while the Eocene and Maastrichtian prospectivity has been removed / low priority. I believe this is an indication that the light oil discovered from Jaguar-1 was likely from the Campanian.

With respect to slide 9 - it clearly shows the outline of the Campanian prospects (2 on Georgetown Block; 5 on Corentyne Block). Interesting to note, the location of Jaguar-1 is outside the areas where the Campanian has been mapped. Just speculating - but it may be that the light oil that was recovered from Jaguar-1 was merely thin sands that are possibily connected to the structure that has been mapped / identified on slide 9. Hence, this may be a reason why the partners are up-beat about moving the exploration program forward - they know they have a potential discovery in the Campanian...just need to optimize the well location.

With respect to slide 13 - 'Six additional wells to test Turonian, Campanian, and Albian prospects'. Again, interesting to see the Eocene and Maastrichtian prospects have been dropped as a priority.

Don't forget - CGX has mentioned in the last shareholder presentation (I think it was June) that they are in the process of updating their third party reserves estimates to include the recent 3D seismic shoot. Kerry Sully stated during the presentation something along the lines that shareholders will review this updated reserve report positively. So, it goes without saying the potential resource estimates for the Albian prospects will likely increase significantly. Moreover, we might get some information in the new reserve report that would indicate the size of the Campanian prospects...

Note, you can see on slide 12 that the current numbers assigned to the Albian is based on the 2D seismic data.

Final comment (unrelated to the CGX Presentation) relates to CGX's 5% Georgetown farmout to Repsol. I personally do not believe PRE would stand by and allow CGX to farmout their assets for pennies. I am willing to bet that PRE was consulted before the deal was finalized with Repsol. I think the recent transaction is positive and a step in the right direction. Again, PRE will not allow CGX to give their assets away in exchange for nothing.

Why are the details of the transaction not publicized? I believe the reason for witholding the information is becuase CGX is still negotiating with other third parties on other potential JV synergies. I think CGX (and Repsol) wants to keep the terms of this recent transaction under lock and key - until all potential JV initatives have been wrapped up. I think it goes with out saying - to see one of the original Georgetown partners invovled in the transaction is certainly very positive.

Bullboard Posts