RE:Re WcpI see your point taal... guess my reply is this... what financial leverage does Frontera have in the event it does discover oil in Kawa-1? Let's say a new JV partner joined along and wanted to fast track a FID on Kawa-1 discovery without any other exploration wells being drilled elsewhere (which would never happen, but let's play along). We are easily looking at $4-5 Billion (using Exxon comparables in their Guyana fields). Where is Frontera coming up with their multi-billion dollar share of the investments needed? Sure, they could do a public share raise, but a company can only generate so many dollars doing that. Companies like Exxon or Total won't sit around waiting for Frontera to come up with cash when they want something done ASAP.
I 100% guarantee any company looking to JV is planning for years down the road to determine if Frontera actually can be a stable financial partner. Right now they would not be... simple mathematics show this. Hell, Frontera held off key CAPEX in 1Q (as stated in their MD&A) because they wanted to preserve cash due to price uncertainty. Frontera is not a big name player, but now they are dealing with big name/ruthless IOCs/NOCs.
Look at the press release devanand1 posted about the rig. Looking pretty clear to me its a 1-shot initial kick at the can for Kawa-1. If this does not come back as a big discovery, Demerera will not be drilled anytime soon. Its way more risky geologically and Frontera does not have endless cash to keep throwing at exploraiton wells.
Guess we will see soon enough. I have been connected with CGX for far too long and have seen minimal return. Least we are finally drilling a well... that's a plus short term! Hopefully they don't screw it up long term and let this well be the only one they drill.