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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 OIL_RUNon Apr 22, 2021 8:40am
290 Views
Post# 33043336

Re: NEWS

Re: NEWS

This is the same rig specification and contractor both Apache/Total and Exxon/Hess/Apache are using.


Would imagine there will be a longer term charter for this rig by one of the above mentioned operators once it completes its program with CGX/Frontera.
 

Given the rig selection and contractor name, it's likely one or more of the JV partners is mentioned above.


In addition, Apache, Total, Exxon, Hess and CNOOC are at a clear advantage given their overlapping seismic acquisition, adjacent well data and general basin modeling. Again, I think our future JV partner (or partners) is one or more of those mentioned above.
 


The key question is that if you are Frontera, how do you position yourself and structure a deal to "maximize shareholder value"?


Do you give up operatorship now to Exxon / Total and let them run the show prior to SPUD? That's not a bad deal given they are advanaged (perhaps the best) deepwater operators in the world.



Does Frontera try and keep CGX holding a large interest in the license through the first multi-well exploration campaign and the sell out after well results? Higher risk but higher reward...


I would imagine there are lots of good options on the table for consideration. When potential JV news is released (as de Alba continues to reiterate this is their "preferred path forward" and part of their "strategic alternative gameplan they are pursuing") - would imagine all who have held shares of CGX will be greatly rewarded.


This includes the largest equity holder in CGX - Frontera Energy. A win-win outcome. GLTA


 

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