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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 jtddon Jun 27, 2018 12:55pm
145 Views
Post# 28237771

RE:RE:Re price

RE:RE:Re priceWhen they were drilling eagle shallow in 2012, the stock price was approximately $2.00 before consolidation.  $2.00 went down to $0.10 over time and then the 10:1 consolidation happened making the stock price $1.00.  It has since settled around $0.20 by today’s standards.  On the old scale, that would have been $0.02 today.  If the price returns to $2.00 on today’s scale, that would be equivalent to $0.20 on the old scale.  It would have to go to $20 on today’s scale to be equivalent to $2.00 on the old scale (which is where it was when they went to drill).  (Remember, there were approximately 800M shares back then.). Seems impossible but that is what it was trading at when they drilled eagle shallow, the equivalent of $20 today.  There’s only 110M shares now, if they actually hit even 500M barrels of oil over the 6 proposed wells over the next 5 years or so, that could result in a stock price much higher than $20.  Even if there is dilution created by increasing number of shares and/or getting a 20% stake, for example, in the drilling by having a joint venture partner completely carry CGX resulting in CGX’s cut being even just $10 per barrel (out of the $72/barrel that it is today), that’s $5B divided by roughly 100M shares making today’s stock price $50 ($5.00 on the old scale which seems totally feasible).  Hope this helps.
Bullboard Posts