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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 Jun 22, 2021 10:27am
223 Views
Post# 33426755

RE:JV

RE:JVI agree taal with your post here. 

Another thing to look at is that Frontera does hedge a lot of their production. Besides the obvious of not getting full market value of ~$75/bbl Brent right now for all of their 40k boed (close to 50% produciton is hedged till end 3Q), it implies that Frontera's board is risk adverse to a large degree. Otherwise, why hedge at all?

Anyway, my point is that if they are willing to hedge against oil, why would they not hedge against a massive risk with offshore drilling by bringing along someone else with big money? Yes, the up-front reward will not be as great (similar to hedging and losing out on maximum oil prices when times are good), but least you are protected in the event of a lesser than ideal drill result. So with that, I do think a JV is still coming. Time will tell I suppose. 

Price is looking great again today... definitely exciting times at any rate!!
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