RE:Its a hustle
I owned this stock years ago when they drilled their initial well and I also owned PRE. I recently bought back into CGX. The timing was more good luck then anything else. I didn't think the price would go up until they began to drill and I'm surprised the price has tripled in less than two weeks. The run up in stock price over the last ten days I think is to raise money or at least to clarify the funding. I think FEC would be agreeable to a stock sale as long as they retain more than 50% ownership. I would hope they don't make the same mistake they did last time and be caught short of funds. So the question is at what price and how much stock? My guess would be $3.00 - $ 3.50 and possibly 50M shares maybe more if possible and if needed. The price has to be attractive enough for peope buying to see an opportunity for price appreciation. At $3 - $3.50 I think the stock could still double with a significant find. If this is possible I think it is a lot better alternative than a joint venture. This would represent less than 20% dilution. It also keeps FEC in control and they don't have to spend any of their money. I guess we will see what happens next week.
I also think the price of FEC will substantially appreciate once the value of CGX is solitified by funding and a discovery. At some point FEC could become a better buy because of the size of their float.