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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
Comment by OIL_RUNon Nov 30, 2020 7:59pm
207 Views
Post# 32006264

RE:RE:RE:RE:RE:RE:Financing options

RE:RE:RE:RE:RE:RE:Financing options

I think CGX can farm out 15% of each license for a two well exploration carry on each license (IMHO). Frontera alluded to the likelihood of multiple (more than one) JV opportunities on their last two earnings calls.


Remember also that as part of farm-down with Frontera - CGX is carried for 8.5% gross for first two exploration wells on each license.


By farming down a small portion of each license for the exploration carry - Frontera / CGX is able to capture upside potential in the event of success. In turn, farm-out more interest in better terms.


But, then again - we are in an area that has already been de-risked by several world class oil discoveries only miles from our licenses.


The other possibility is if a major wants to buy-in and willing to pay a premium to operate.


Of course, a buy-out, is also a possibility - for the right price....

Bullboard Posts