RE:RE:RE:RE:RE:RE:Buyout??Mannyman99 -
I would suspect that a JV transaction would largely be in the form of a 'carry' (to cover future exploration, appraisal and development costs) with some cash to cover historical expenses incurred on the block. For example, CGX farming out a stake in their license(s) would to similar to the Apache-Total deal. CGX would be the direct beneficiary of the 'carry' and Frontera would benefit significantly via the CGX's increased share price.
In a buy-out of CGX, Frontera - I would imagine - would want a significant premium over the existing share price. As part of buy-out bidder would purchase all shares and Frontera would be in position to approve transaction. Note, Frontera's break-even (including exercise of warrants) stands above $0.72 CAD. As part of transaction, Frontera gets a nice capital gain off of their equity investment in CGX and continues to hold their 33% interest in both licenses.
There are other scenarios that could be possible. For example, a company could just simply buy-out Frontera. However, I don't think the super-majors or large E&Ps would want to mess around with Frontera's legacy portfolio (i.e. onshore Colombia, Peru, etc). I think a potential buyer just wants the offshore Guyana license - in particular, Northern Corentyne.
Just my humble opinion... Just remember - the primary means for Frontera to make a mint off of their investment is by maximizing CGX's share price. We are all in the same boat - interests are aligned.