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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 westcanprideon Mar 26, 2021 3:27pm
210 Views
Post# 32887961

RE:yes and no ...

RE:yes and no ...I hope its not PAREX. They have a whopping market cap of $2.86B CAD. Frontera has a current market cap of $615MM CAD. Combined, these two do not have enough money to do nothing in Guyana other than drill some initial wells. And then what if we find oil? Go back to the market again looking for a 4th JV to help fund development wells and first production? 

https://corporate.exxonmobil.com/News/Newsroom/News-releases/2020/0930_ExxonMobil-to-proceed-with-Payara-development-offshore-Guyana
- Perfect example... Exxon JV is spending some $9B USD ($11.33B CAD) to develop a 220,000 bbl/day operation in Payara (from 3Q 2020). That's close to $41,000USD/barrel. 

- Even if we found in oil in Corentyne and wanted to produce say 50,000 bbl/day (which is not a hell of a lot either from a 'big' offshore field), that would still require ~$2 billion USD. And this is assuming Corentyne (Kawa-1) is a massive initial success and they go straight to drilling development wells. That is not realistic. 

- Look at Apache. They brought along Total, a company with a market cap over $100B. That's what we need.... a massive IOC/NOC to join along. Not some little company like Parex. Anything short of a company with very massive pockets would be a waste of time and we would only see our Working Interest decrease even further (if not bought out completely for a fraction of what we think we are worth). I think De Alba/Herbert know this... hopefully they can bring along that elephant. 




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