RE:DOG & PONY SHOWYour definitely not wrong Phanton.
I still think when its all said and done, CGX should be looking to sell at least 40-50% of their working interest to a super major IOC/NOC. Get a company involved with deep pockets who wants to drill multiple wells ASAP and more importantly has money to fund a development drilling program (which will cost in the billions). CGX this way can still be involved but someone else would be doing the real work and can have the financial ability to do so.
Frontera is just killing time in my opinion right now in Guyana with regards to finding a JV partner. $90MM in 2021 captial spend is still a joke when compared to what Exxon JV and Apache/Total are doing. I am happy at least that much will be spent in 2021... absolutely! But let's be real... for all of 2021, Frontera is only planning to spend $200-295 MM for the entire company. In the event either Corentyne or Demerera actually hits economic oil, the amount required to drill produciton wells will far exceed a couple billion dollars. Frontera does not have this kind of money and sure as hell CGX does not.
I mean, sure, CGX could keep doing rights offering... Say another 100 million shares in 2021 at $1 (so $100 MM in new capital). Then what... we hit oil and help fund the port.... we are then again looking for more money again in either 2022 or 2023. But at this point, we probably would need billions to do a proper development program. Suppose one could argue to having discovered oil would make attracting capital easier... but junior/mid sized oil companies around the world would tend to argue differently (i.e., oil sands, GoM, L48 shale, North Sea, etc). Plus billions in new captial is not a joke and CGX/Frontera will eventually need to give up working interest. Endless dilution of shares will not do the trick.
Least we are back to high .90s again. Let's just hope we get the real news of 2021 we are looking for ($/JV) ASAP.