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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 OIL_RUNon May 08, 2021 3:17pm
275 Views
Post# 33160284

RE:RE:Re Wcp

RE:RE:Re WcpWestcanpride -


If a commercial discovery is made and validated through appraisal, Frontera/CGX should be able to establish an RBL (reserve based lending) facility to cover future development costs.


This is the same path Tullow and Kosmos took when they developed the Jubilee field offshore Ghana in 2005.


Proven reserves will eventually be added to the CGX/Frontera balance sheet and can be used as collateral to get the proper financing in place. From there it's a fairly straightforward exercise of matching future production, cash flow, etc.


Once you have proven reservoirs that contain high quality oil (highly productive wells), backed by industry leading breakevens - there are a host of quality options available for CGX/Frontera to consider.
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