I see the same pattern how the share price moves in CGX and ECO one and a half years ago. Africa Oil had then just taken a 20% "private rights issue" and pumped in cash enough for the first drills, the SP of ECO was hovering around the $0,45 and dipping below. Almost no volyme in the share. Investors were concerned in why Africa Oil and the legendary Lundin family could get in cheaper than the current stock price, and the investors forgot to see why they did it.

Same now with CGX, people stare at the 0,25 rights offer and don´t grasps what CGX has in assets. We have in front of us a 58 million dollar traded company that sits on 2 blocks with oil worth easily 50 times that value net to CGX. We have the biggest oil producer in South America as a stable main owner who supplies cash needed for the first drills. Frontera has also stated that CGX will continue operating as an independent traded stock on the stock exchange, they don´t intend to swallow up the company. 

I can´t see one single thing that can stop CGX to rapidly go to $0,75 in the coming months pre spud, or a bit later if the approval process takes a bit longer, Frontera can solve this financing of the first drills in many other ways with the same dilution effect for all of us small shareholders, so no worries.  JV / loan / private placement / rights issue .. total indifferent to me.