RE:RE:Realistic next steps....? Waitingstill and others.. I am not sure why you are so upset with my post. I honestly thought I outlined a very sincere approach to my concerns regarding what will happen post-concession extension. For all these years, I have been listening to all these wonderful stories on this board about how great CGX is and the amazing opportunity (hell ppl are still doing it this evening... and I get that totally). But with all of this, as of tonight, we are at .36 cents/share depsite the glorious opportunity we have in front of us. Eventually someone needs to start asking tougher questions (even if some of the scenarios are perhaps a bit extreme) as to what will happen going forward... if for nothing else, helping keep honest discussions going forward. Lord knows neither CGX or Frontera could care less what we think.
Based on previous drilling costs from other operators, it probably will cost between $25-50 million USD/well (with more wells drilled back-to-back costing less). If Frontera had all this extra cash sitting around, I guarantee they would have been using it so far to help prop up there other struggling producing fields and not just sitting on it. Would I love to see Frontera take a greater percentage of the drilling costs needed to drill a well in Corentyne... absolutely. But guess we will have to see. Plus, Frontera has ~50,000 bbl of current production and yet are only worth ~$225M on the stock market. You think anyone would pay any sort of premium for them right now? I highly doubt it. And hence my point... if companies with actual production (and little actual debt) are being valued so poorly on the market, why would someone come along and pay any sort of a premium for unexplored offshore land in a foreign country like Guyana, in addition to the costs required to drill for the oil and eventually produce it? We are likely talking 100's of millions needed just right there before 1 drop of oil is produced from Corentyne.
Either way, I am sure the new PPP government is likely asking CGX/Frontera these tough questions and hence the delay in confirmation of license extension. I just hope we get positive news soon and more importantly an actual plan on how they will drill some wells.