RE:RE:RE:SEPT-09-2020: SHELL ENTERS GUYANA-SURINAME BASINThere we go. If companies like Kosmos are only getting $200 million USD for their vast land interests in multiple basins, no way CGX/Frontera will be getting anything greater. Painted Pony in BC, Noble in Texas, and now Kosmos, among many others in 2020, are clear examples of how little big companies are willing to pay for land interests. Simple as that. Frustrating as hell to see for CGX.
And like Devanand1 pointed out yesterday, why would someone pay massive money to CGX when they can just go the Frontera and buy them out completely for $350-500 million total (current market cap of $250 million plus any outstanding debt) and in doing so pretty much get 80% of CGX?
It is a massive shame and shows how badly both Frontera and CGX have played their hand since agreeing to the JV a couple years ago. Oil was upticking, Guyana was seeing massive activity from multiple companies (way more than 2020) and yet they couldn't make a deal with someone else. And now with covid and low oil prices, we have precious little barganning power.
I look at it this way... the fact CGX has to resort to handing out novelty cheques for ~$65,000 CAD ($10 million Guyanese) to keep in the good graces of the new government to hope for another license extension is pretty sad.... god forbid they would finally do it the honest way by actually drilling for oil and finding someone who would help them drill for oil.