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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

Comment by waitingstillon Nov 30, 2020 10:52am
150 Views
Post# 32000122

RE:RE:RE:RE:Financing options

RE:RE:RE:RE:Financing optionsTiger - that is a possibility but Frontera would be fools to do that. That said, I would not put it past them. They have not drilled one offshore well themselves so they have no experience. They have 33 percent. They will have a difficult time funding just that 33 percent going forward once a big drill program is announced. Even majors share the risk in these types of plays and there are no sure things. Just look at the uneconomic well drilled on Kaiteur recently. I actually thing Frontera could potentially give up say 8 percent to go down to 25 percent to raise money as part of a deal to bring in a big player (maybe I am just dreaming). The one caveat would be if Frontera tried to play it like Apache and drill the well, hit and not disclose except to a major like Total, do the deal and then disclose the discovery. But that is VERY risky for Frontera and could very well put them out of business. Plus you would have to have most everything set up beforehand for a company like Total to move so fast. That I don't think our team is up to that. These guys need to play it safe and bring in an experience major to operate, give up a large chunk and get back costs to pay for GandA and a carry for at least a few holes. That goes for both Frontera and CGX. Let's pray they do the right thing.
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