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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 Jan 23, 2014 6:15pm
486 Views
Post# 22127516

Injunction granted

Injunction grantedMy take on this subject is that, at the time when Repsol let the Georgetown PPL expire, they must have assumed that CGX was broke due to the cost of two unproductive wells and that CGX would not contest their decision. They also must have thought that they could come back in to take the new Kanuku PPL without any objection from CGX for the same reason. The fly in the ointment now is that our big brother (PRE) has announced that they are putting aside around $140M for development in Guyana. Some will go to further seismic work and the rest is speculated to be put towards drilling costs. This monetary fund could be there to cover any expense, but my feeling is that it could also help to fund CGX to buy back into the Kanuku license amongst other things. The argument that CGX is now using is a little bit of a grey area to me, but if they are 100% correct in what they are stating they should win this argument! Having stated that, who would want to be a partner that potentially tried to screw ya! The final outcome could be totally different! Maybe Repsol could be thrown out as a result, and maybe CGX will ask RWE Dea AG to partner with them, or maybe there could be a threesome with Repsol, CGX, and RWE being equal partners. However,do not forget that although Repsol was the operator they only had a 15% interest in the Georgetown concession and to do what they did seems highly irregular! This is only speculation on my part, but in the near future things could get very interesting!!!! The bottom line is that, whatever the outcome is, it cannot worsen CGX's case. Stay tuned longs!
Bullboard Posts