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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 westcanprideon Oct 16, 2020 4:13pm
165 Views
Post# 31730268

Reality Check

Reality CheckLord knows I need one with CGX and probably many others. 

I feel the frustration of those on this board (either as active posters or passive followers). 

End of day, these upcoming 3Q 'results' better be a damm good strategy on how they plan to move forward. No more excuses at this point. Examples: 
i) They better have a bloody resource report completed. No sensible company takes over 1yr to acquire seismic and process and god forbid make some interpretations, especially on what is a pretty small piece of land. A 3rd party estimate of P10-50-90 resources in-place better occur with this 3Q release. 
ii) License extension. We better hear something that says we have another 12-18 months to drill a well. All these years of a** kissing better pay off otherwise all of CGX management should be fired ASAP. Not like there presence has yielded anything else over the past 5+ years. 
iii) Plans to drill a well: Ultimately, all the oil estimations in the world and license extensions mean absolutely nothing if they do not plan to drill a damm well in the next 12-18 months. I truly do not care how they get the money (JV, further share dilution, etc), but we need to drill wells. 

Further to point #3 above, I could sit here all afternoon and outline how many companies with proven oil reserves (ie., either producing or listed as highly prospective contingent resources) cannot get money to progress there projects forward. And this is all over the world (oil sands, shale oil, gulf of mexico, etc). Hell, look at Frontera. Produce over 50,000 bbl/day, resources in multiple countries and yet they are worth only $221 Million CAD on the TSX. These are incredibly tough times for many companies with forward thinking and innovative management teams, let alone for those only filled with greedy and short term thinkers. 

Bottom line, our land is pretty worthless until we drill a bunch of exploration/apprasial wells and actually have plans to develop the land. But yet, we cannot even get an additional JV to come aboard to help us drill these wells. As stated before, if we have to give this land away to attract that white knight company so they can sink $50-100 million needed to drill some wells so be it. 

In any event, my 'reality check' subject header definitely implies (to me at least) that we are a long bloody way from mass riches we have yearned for all these years. If management does not release a meaningful 3Q result, I will seriously consider selling my shares, taking a loss and moving on with my life. These guys have had 20yrs to make something happen (10 in my case) and we are still not even at the start line. Its truly pathetic. At this point, if the current seismic does not excite an additional company to JV and help drill wells, we are screwed. And unfortunately, Frontera is a pretty poor JV parnter as well at this point. 

Definitely sad times for CGX despite what should be a exciting period. Least management and the BoD still get paid a fortune. Someone still wins I guess. 
Bullboard Posts