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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 catkinon Mar 02, 2013 3:55pm
304 Views
Post# 21068097

PRE's Investment

PRE's Investment

PRE have already stated that they are prepared to spend between 600 M to 1000 M in the area. This would equate to 3 to 5 wells @ 200 M a well.

I believe that 3 to 5 wells has previously been indicated by CGX!

The contract price per well could be reduced given that the drilling contractor has multiple wells to drill prior to leaving the area.

To me this means that PRE has every intention of going it alone, with the full cost, through the auspicious of CGX but PRE as the operator.

PRE does not hold the licenses, CGX does, and the fact that PRE would own 70% of CGX does not necessarily mean that they have ultimate right to use CGX's license.

However, going this route still means that PRE gets 70% of any potential profits! Admittedly it is not 100% if PRE did the drilling through PRE, but the terms of the licenses my preclude PRE from doing it without CGX.

 

Bullboard Posts