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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

Post by waitingstillon Mar 04, 2021 11:04pm
223 Views
Post# 32725214

Drill plans

Drill plansVery interesting that FEC only mentions the C drill hole and not the D hole. And FEC stated that they have a range of $40mil to $90mil planned for this hole. While CGX stated this...

"The Company expects, based on presently available information, that the total cost of the Guyana exploration program in 2021 will be approximately $90 million."

In addition, CGX stated that Kawa will be drilled in second half of 2021 while they made no mention of when Makarapan should be drilled.

Thus I conclude this. FEC/CGX plan only to drill Kawa this year definitively and FEC has put aside $90mil to drill that. This coincides with CGX mentioning only Kawa to be drilled in second half of 2021.

Makarapan has to be drilled by Feb 2022. So they have some time. I suspect that if they get a JV, they are going to drill both back to back. If they don't get the JV, they are going to only drill Kawa and wait on Makarapan. Not really sure of the timing because if they drill Sept/Oct, that would lonly give them about 3 months to spud Makarapan in time. But FEC was clearly focused on Kawa only and $90mil seems about right for drilling a 6500m deep hole in intermediate (350m) water depths. Too bad no one asked about Makarapan on the CC and got a specific answer.

At least we know Kawa is getting drilled. I sure hope these guys can secure a solid JV with a known offshore entity, preferably on of the majors already in the basin. That is what it is going to take to get our shareprice into multi dollar range. Parex not going to do it imo. Need someone big and experienced (I don't know Parex but I doubt they fit the bill even if they have the cash currently).
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