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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 westcanprideon Dec 02, 2020 10:42am
211 Views
Post# 32017564

RE:Concerns

RE:Concerns Its a good question Mannyman99. 

It used to be when good news in the basin happened (Exxon first discovery in May 2015, lead up to the Tullow wells last fall, Apache discoveries this past January-Feb), CGX shares floated up to around $1/share very quickly. Will we ever see this again on solely good news? I kind of doubt it. Hell, we can't even push the share price above .60 cents on our own good news regarding seismic or play types. Pretty sad really. 

If we got bought out, to get $1.20/share, that would imply someone would pay ~$327M for CGX shares. I doubt that will happen. Look at Frontera... market is only pricing them at $271M right now and they actually produce 45,000 boed and have over 170 million 2P reserves. I am highly doubtful shareholders of any company would be happy if there management paid $327M for CGX and the land base when they could go and spend that money elsewhere and actually recieve cash flow (which is king right now by the way!) from current production and also have significant 2P reserves to go along with it. 

Only way we get above $1/share again is if we actually farm out 50-55% of our current working interest in both Corentyne and Demerra to a serious major IOC/NOC and recieve some sort of free carry to drill 3-4 wells. This will allow the land to actually get drilled. Will also allow the land to actually see investment required to bring the discovered oil onto production. I would much rather see Corentyne one day produce 100,000 boed and CGX recieve 10,000-15,000 net barrels instead of sitting around holding 66% working interest and doing absolutely nothing like we have for the past decade. 

Of course, to see this 'dream' of mine occur (and most importantly get this bloody share price above $1 so that we can sell and make some capital gains), both CGX and Frontera have to come to grips that there land base is worthless without actual meaningful cash to drill wells and most importantly captial to bring discovered oil onto production. If both management teams continue to live in 'la-la' land and think some white knight will come along and pay them $200-300M dollars for the land, and then pony up millions more to drill wells, we are screwed. Truly a dicey situation right now no doubt, made no better by the guys we have working on our behalf... not that they probably care. They are still multi-millonaries and 'win' regardless of what happens going forward. 
Bullboard Posts